Compare the Best Medical School Student Loans for July 2025 in Minutes

Medical school student loans help future doctors pay for their education. They come in two main forms: federal student loans and private student loans.

Federal loans — including Direct Unsubsidized Loans and grad PLUS loans — are issued by the U.S. government. They have fixed interest rates that are the same for all borrowers and come with protections like income-driven repayment, deferment, and possible loan forgiveness.

Private loans are offered by banks, credit unions, and online lenders. These loans are credit-based and can help cover remaining costs after federal aid is exhausted. For students in high-cost medical programs, private loans may be essential to fully cover tuition, living expenses, and all other costs involved.

Federal vs. private medical school loans: Key differences

Before borrowing for medical school, it's important to understand how federal and private student loans differ. Each type has unique advantages and limitations, from how interest rates are set to repayment flexibility, and forgiveness options. This side-by-side comparison can help you decide which best fits your financial situation:

1. Get prequalified rates

With Credible, you can compare rates from multiple private lenders at once, without hurting your credit. Simply enter your personal information, then receive an overview of your estimated rates and terms from different lenders you qualify with.

2. Compare private lenders

Research each lender to compare key features and choose the right loan for you. Consider interest rates, repayment options, fees, member benefits, and customer reviews.

3. Select your loan

After narrowing down your list of private lenders, choose the loan option that best suits your needs. Also consider whether you'll add a cosigner to the loan. If so, you'll need to gather some information from your cosigner to complete the next step.

4. Submit an application

Gather the necessary documentation to apply. This may include a government-issued ID, pay stubs, tax records, and more. Fill out the private loan application, provide the requested documentation, sign, and submit.

Federal loan limits (2025-26 school year)

• Direct Unsubsidized Loans: $20,500/year, $138,500 total (including undergraduate loans)
• Grad PLUS loans: Up to your school's full cost of attendance

Private loan limits

Most lenders allow you to borrow up to the certified cost of attendance at your school. Some set high lifetime limits for medical students.

Eligibility for private medical school loans

To qualify for private medical school loans, you typically need:

• Good credit score (mid-to-high 600s or higher)
• Verifiable income
• Low debt-to-income (DTI) ratio, ideally under 36%
• Enrollment in an eligible medical program

If you don't meet these requirements on your own, applying with a cosigner could help improve your chances of approval.

How medical school loan interest works

Interest on most medical school loans begins accruing as soon as the funds are disbursed, even if you're still in school or completing your residency. With federal student loans, the interest rate is fixed and doesn't depend on your credit, offering predictability throughout the life of the loan. Private lenders may offer either fixed or variable interest rates, and your rate is typically determined by your credit history or your cosigner's qualifications.

Many private lenders provide deferment options during residency, allowing you to postpone full repayment. However, even during deferment, interest usually continues to accumulate. Making interest-only payments while in school or during residency can significantly reduce the total cost of your loan over time.

Private medical school loan pros and cons

Private loans can be a good resource for medical students who need to borrow beyond federal limits or who qualify for competitive interest rates based on their credit. However, they aren't the right fit for everyone. Here's a closer look at the pros and cons:

Medical school is a major investment, but there are smart strategies that can help you minimize how much you need to borrow. Through financial aid, smart budgeting, and alternative funding opportunities, you can borrow less. Consider the following options:

• Apply for scholarships and fellowships specifically for medical students.
• Consider working part-time or participating in paid research opportunities.
• Explore service-based programs such as the National Health Service Corps (NHSC) or military health scholarships that offer funding in exchange for service commitments.
• Live frugally to lower your day-to-day expenses and avoid unnecessary borrowing.
• Start at a less expensive school or aim to qualify for in-state tuition to reduce overall education costs.

To determine the best student loan lenders, Credible collected more than 1,000 points of data on two dozen companies and evaluated them on several different categories: repayment options, eligibility, interest rates, loan terms, and customer support. We assigned a score out of five stars to each lender based on our findings. Below are the weightings assigned to the general categories for the best student loan companies — which comprise individual criteria that are also weighted.

• Repayment options: 30%
• Eligibility: 25%
• Interest rates: 20%
• Loan terms: 15%
• Customer support: 10%

While the best lender for you will depend on your unique needs and financial circumstances, these findings should help answer your questions and assist you in your search for the best student loan.

Learn more about our methodology.