3 Private Loans for Medical School

What Private Loans for Medical School are Available?

Private loans for medical school cover the cost of education, including tuition fees, books, lab supplies, computers, or living expenses. Medical school costs a pretty penny, and it easily means having more than six figures of debt.

According to the Association of American Medical Colleges, the education debt for medical school graduates in 2019 was around $200,000.

The fact is, medical school costs a lot of money. So it’s only natural to assume that those who put themselves through the rigor will need some support in terms of loans.

Taking out loans for medical school is no small decision. So you should make sure you’re taking out the right loans. Government and charities have annual funds for medical education grants.

Most importantly make sure that you first try to apply for college grants for medical schools. Here are some of the top private loans for medical school.

Private Loans for Medical School – How do they Work?

How Do Private Loans for Medical School Work?

Private medical loans are also known as alternative student loans. After federal loan options have been exhausted, you need to typically research to find a suitable private loan for medical school.

While there are some key advantages you should research, there are drawbacks as well.

• Credit Score

Private Loans do check credit. Excellent credit can be advantageous as it lowers the interest rates.

• Higher Borrowing Caps

Private Loans allow you to borrow up to 100% of the cost of attendance. Higher borrowing caps help an individual to cover the costs of a pricey school or perhaps attending medical school.

• Variable Interest Rate

Private loans are ineligible for income-driven repayment or federal forgiveness programs. Additionally, while some lenders offer fixed interest rates, many do not.

• No Interest Subsidy

The interest begins from day one. Some students will even need a cosigner to be eligible for a private loan.

Private Loans for Medical School – Where to Apply?

Private Loans for Medical School – Where to Apply?

Some medical students cannot rely on federal loans alone to pay for medical school. Federal loans often get exhausted due to the school’s cost.

Students need more funds to cover living expenses or more time to complete their education, which increases costs.

Private loans for medical school may be a cheaper alternative due to low-interest rates and excellent borrower programs.

However, it is recommended to compare the options available as it makes getting a loan super easy. Here are five options for private medical school loans to consider.

• Ascent Medical Student Loan

Ascent’s medical school loan is an innovative private student loan program providing access to higher education funding. It encourages the financial wellness of students and their families.

Highlights – Ascent Medical Student Loan

1. Fixed APR: 4.60 – 13.57%
2. Variable APR: 3.65 – 12.40%
3. Min. Credit Score: mid-500’s

Advantages – Ascent Medical Student Loan

1. Forbearance of 24 months
2. A grace period of 36 months
3. Without a hard credit check, you can see if you qualify and at what rate

Qualifications – Ascent Medical Student Loan

1. A typical credit score of cosigners: Not available
2. Minimum income: Not available
3. Loan amounts: up to $200,000

Term Lengths – 7, 10, 12, 15, or 20 years

For more information, visit https://www.ascentfunding.com/

• Sallie Mae Private Student Loan

Sallie Mae Private Student Loan offers borrowers up to 100% coverage for their funding needs.

The lender also offers a medical residency and relocation loan to help cover costs associated with residency. You can delay payments in residency for four years.

Highlights – Sallie Mae Private Student Loan

• Fixed APR: 4.25 – 12.59%
• Variable APR: 1.25 – 11.35%
• Min. Credit Score: Not disclosed

Advantages – Sallie Mae Private Student Loan

• Provide loans to part-time students
• Borrowers can access online tutoring and track free credit score
• Non-U.S. citizens can apply with a U.S. cosigner

Qualifications – Sallie Mae Private Student Loan

• A typical credit score of cosigners: Not disclosed
• Minimum income: Not disclosed
• Loan amount: $1,000 up to 100% of the certified costs

Term Lengths – 5 to 15 years

For more information, visit https://www.salliemae.com/student-loans/private-student-loans/

• College Ave Medical Student Loan

College Ave helps you make your medical school loan payments fit your life. It is the most suitable option for med students who’ll need extra time before starting repayment.

Highlights – College Ave Medical Student Loan

1. Fixed APR: 4.84 – 9.95%
2. Variable APR: 1.89 – 8.99%
3. Min. Credit Score: Mid-600s

Advantages – College Ave Medical Student Loan

1. Without a hard credit check, you can see if you qualify and at what rate
2. International students can apply with a cosigner.
3. You can submit payments up to an additional 48 months during fellowship after the grace period.

Qualifications – College Ave Medical Student Loan

1. A credit score of approved borrowers: Mid-700s.
2. Minimum income: $35,000/year
3. Loan amount: $1,000 up to the entire value of attendance.

Term Lengths – 5, 8, 10, 15, or 20 years

For more information, visit https://www.collegeavestudentloans.com/student-loans/

Private Loans for Medical School – Cover Education Debts

Conclusion

Private medical school loans can help if you have excellent credit and don’t plan to pursue Public Service Loan Forgiveness.

Before approval, the lender does a hard credit pull to verify credit history. The interest rate depends on credit, the loan term, and whether you choose a fixed or variable rate.

Weigh all the benefits and apply for loans today!