How much does medical school cost?

While the summer sun may currently be grabbing your attention, back-to-school season will be here before you know it. Now is a good time to start thinking about how to pay for educational expenses, including medical school costs.

Start exploring your college financing options here.

How much does medical school cost?

On average, the total cost of medical school is $230,296, which is an average of $57,574 per year Analysis by the Education Data Initiative.

According to the Education Data Initiative, out-of-state private medical school can be even more expensive, costing an average of $256,412. If you attend an in-state public school, however, your medical school costs can be considerably lower at an average cost of $159,620.

But regardless of your expenses, it’s difficult to afford medical school through savings alone. In many cases, medical school students turn around Federal and private student loans. Federal student loans often offer more attractive features, however Sometimes private student loans A funding gap needs to be closed. They may also sometimes have lower interest rates.

Compare private student loan rates online now.

Using federal student loans to pay for medical school

for Federal student loansMedical school students often have two main options:

• Direct Un-subsidized Loans: Also known as Stafford loans, these loans allow medical school students to borrow up to $47,167 per year, although the amount varies slightly by medical school year. University of South Florida Health. The interest rate for these loans disbursed on or after July 1, 2023 and before July 1, 2024 is 7.05%.

• Grad Plus Loans: Also known as Direct PLUS loans, these have no specific borrowing limits for medical school. “[Students] The program costs as much as borrowing from a college or university, but these types of loans have higher interest rates,” explains Jack Geist, founder and CEO of Student Loan Tutor. For these loans disbursed on or after July 1, 2023, and July 1, Before 2024, the interest rate is 8.05%.

Other types of federal student aid, such as Perkins Loans and the Primary Care Loan Program, may also be available, but are underutilized.

One thing to remember with federal student loans is that the initial interest rate is not the end all. For those who end up working for a nonprofit (which many hospitals do) or the government, after 10 years of on-time payments “may qualify them to discharge their federal student loans,” says Geist.

Income-driven repayment can also help manage federal student loans, he added.

Using private student loans to pay for medical school

Although federal student loans can offer many benefits, sometimes medical school students need them Private student loans A gap does not cover federal student loans.

“Private loans can come with higher borrowing limits, making them a useful supplement to federal loans, but that borrowing limit depends a lot on the student’s creditworthiness,” says Elizabeth Pennington, CFP, senior associate at Fearless Finance.

It’s possible that medical school students can save money on private student loan interest payments, but it depends on the circumstances, including whether there are federal loan forgiveness or forbearance options.

“The main advantage of a private loan, in my view, is if you get a significantly lower interest rate than a federal loan. For example, in 2020 or 2021, if the interest rate is 3% to 4%, it might make sense to pursue a private loan,” Pennington said.

“However, federal loans have some serious advantages over private loans, including the possibility of forbearance as we saw during COVID, the ability to choose an income-based repayment plan and the ability to have the rest of your debt forgiven after 20 to 25 years. , or 10 years if you are eligible for public service loan waiver,” he added.

When considering a private medical school loan, be sure shops around See how rates compare between different student loan companies. Rates can vary significantly depending on the lender and your financial situation.

See how much you can borrow with a private student loan today.

Managing Medical School Costs

Medical school tuition can be expensive, so it’s important to carefully weigh financing options and see what makes sense for your future. And it’s not just a matter of choosing between different types of student loans.

For example, federal loan forgiveness through public service work may seem appealing, but it’s possible that taking out federal or private student loans and then working in a private practice leads to a better overall financial situation.

“Consider the trade-off between salary versus loan forgiveness when weighing the value of that work,” Pennington says.

The good news is that medical school students can often look forward to a promising career.

“The demand for newly trained physicians is very strong,” said Leah Grant, interim president of AMN Healthcare Physician Solutions. “Our survey data shows that most graduating residents receive 50 or more job offers during their training.”
And in a competitive market, “some employers offer to help pay off physician educational loans, with an average payment amount of $101,572,” he adds. “Physicians who are concerned about their debt load may seek private practice employers who offer debt repayment.”