Credible takeaways
- Scholarships and grants for medical school can significantly cut education costs and reduce the need to borrow.
- Complete the FAFSA each year to access federal loans, which often offer lower interest rates, flexible repayment terms, and higher borrowing limits for medical students.
- HRSA loan programs provide low-interest funding for medical students who commit to serving in underserved communities after graduation.
- Private student loans can help fill any remaining funding gaps once you've maximized other sources of financial aid.
Medical school is expensive, and costs continue to rise. The cost of medical education increases by about 3% to 4% each year, according to the Association of American Medical Colleges (AAMC). Many programs already charge more than $100,000 annually when you factor in tuition and fees, and other essential expenses.
If you're planning to attend medical school, it's important to have a clear strategy for how you'll pay for it. This guide covers several smart strategies to help you pay for medical school and reduce your total costs.
Current private student loan rates
Scholarships and grants
Scholarships and grants are free money, meaning they don’t have to be repaid like student loans. Using scholarships and grants can greatly reduce your education costs, limiting how much you need to borrow in student loans.
There are four major scholarships available to medical school students:
- Diverse Medical Scholars Program: The UnitedHealth Foundation offers a renewable $7,000 award to over 30 students each year who are part of African American, Latino, Native American, or Asian American communities.
- Herbert W. Nickens Medical Student Scholarship: Students entering their third year of medical school can apply for a $5,000 scholarship from the Association of American Medical Colleges.
- National Health Services Corps (NHSC) Scholarship: Primary healthcare students willing to make a service commitment of at least one year may qualify for an NHSC scholarship that covers tuition and fees. NHSC scholarship recipients also receive a monthly stipend to help cover living expenses.
- Physicians of Tomorrow Award: Medical students approaching their final year of school can get a $10,000 scholarship from the American Medical Association.
Editor insight: “It's possible to qualify for multiple medical school scholarships and grants, and combining them can significantly reduce how much you need to borrow. I recommend researching a variety of niche scholarships tied to your specialty or background, and applying for as many as you can each year to improve your chances of getting free funding.”
— Renee Fleck, Student Loans Editor, Credible
Related: How to Apply for Scholarships and Grants
2. Fill out the FAFSA
Federal student aid is also available to students who can't afford to pay for medical school on their own. To access federal loans, you'll need to submit the Free Application for Federal Student Aid (FAFSA) each year. There are two types of federal loans available to medical school students:
Direct Unsubsidized Loans
- Available to graduate and professional degree students
- Lowest interest rate of federal loans available to medical school students
- Loans disbursed between July 1, 2025, and July 1, 2026, have an interest rate of 7.94%
There are limits to how much you can borrow through Direct Unsubsidized Loans, though medical, dental, and veterinary students often qualify for higher loan limits than other graduate students. If you're enrolled in a health profession program, check with your school's financial aid office to confirm your annual and lifetime borrowing limits.
See Also: Best Medical School Loans in 2025
Graduate PLUS Loans
- Borrow up to the total cost of attendance without any cap on how much you can borrow
- Loans disbursed between July 1, 2025, and July 1, 2026, have an interest rate of 8.94%
Unlike other types of federal student loans, PLUS Loans do require a credit check. If you have an adverse credit history — such as having a bankruptcy on your credit report — you may need an endorser to co-sign your application to qualify for a loan.
Important: Grad PLUS loans will be eliminated from the federal student aid program starting July 1, 2026, which could make it harder for medical students to cover their full cost of attendance. If you borrow before that date, you can continue using the program for up to three additional academic years or until you complete your degree — whichever comes first.
3. HRSA programs
The Health Resources and Services Administration (HRSA) operates several different need-based loan programs for students attending medical school. These programs offer long-term, low-cost loans; in return, the HRSA asks that students commit to serving in communities that lack access to medical care after they graduate.
- Loans for Disadvantaged Students (LDS): LDS loans are available from select schools to disadvantaged students studying allopathic medicine, osteopathic medicine, podiatry, dentistry, optometry, pharmacy, or veterinary medicine.
- Health Professions Student Loans (HPSL): If you’re enrolled at least half-time at a participating school and are planning to study dentistry, optometry, pharmacy, podiatry, or veterinary medicine, you may qualify for the HPSL program.
- Primary Care Loans (PCL): Students pursuing a degree in allopathic or osteopathic medicine full-time may qualify for a loan through the PCL program.
Loans issued through the HRSA programs have interest rates as low as 5% and are interest-free while the loans are in deferment.
4. Private medical student loans
If you still need help paying for med school after applying for scholarships, grants, federal loans, and HRSA loans, private student loans can help fill the gap.
With private loans, you work with an individual lender to take out money to pay for your remaining classes or even your residency. Interest rates vary from lender to lender. Depending on your credit score, you could qualify for a private student loan with interest rates that are even lower than the rates of federal loans, helping you save money — especially if you use a cosigner. Over 90% of private student loans are taken out with a cosigner.
Managing your medical school loans
While medical school is expensive, there are funding options available that can make it more affordable. Now that you know how to pay for medical school, you can minimize your costs while completing your degree and residency.
In the future, after you’ve graduated, if you need more help managing your debt, consider refinancing your medical school loans. Refinancing can help you save money and get out of debt faster.
FAQ
How can you go to medical school if you can't afford it?
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