Financing a Medical School Education:

Getting the Right Loan

Students who have graduated from their undergraduate programs and are looking to go into graduate school or professional programs face a new set of problems when facing tuition, books, living expenses, and other financial drains. Professional schools and grad programs are often more expensive--sometimes much more--than undergrad educations, sometimes thousands of dollars more per year, including medical school programs. That's why the student entering med school sometimes panics at the price tag and wonders how he or she will get along. The Stafford Loans and other programs are great, but sometimes fall short of the total cost of the program. Parents sometimes can't bridge the gap, and the student is faced with trying to find another loan. That's where the private loan comes in. Let's take a look at the Stafford Loan first to see how it can benefit medical school students.

First, the Stafford subsidized loans are based on financial need, and have higher limits. This means that the medical school student may have a better chance of getting one, since he or she may be of an age to declare independence from parents. You have total loan limits of $20,500 annually with a maximum of $8,500 in subsidized loans, but this is still a substantial amount. As with the Stafford Undergraduate Loans, you will not be paying the loan back until 6 months after leaving school, and are not charged interest during your education or this deferment. Over the entire course of your study in law school, you have a limit of $138,500 and no more than $65,500 can be subsidized. Also you should check with your school's financial aid office to see if you qualify for the maximum--you may not, and that could cause trouble for you that you don't need when you're trying to study.

Private medical school loans are a great option for those who can't quite squeeze through med school on the Stafford Loan program. The rates are low, and some come with the same 6 month grace period that the Stafford comes with. However, remember that with some of these loans you must begin repayment immediately, which means you will have to have a job. One requirement for some of the loans is that you are employed in your field so that you can, indeed, begin paying the money back. This can be a problem for people in professional divisions--these programs are time consuming and very demanding. However, other private loans don't require employment, and often behave like the Stafford Loan. They don't charge interest during the time when you are in school, and they don't ask for repayment until six months after you have left school.

The limits on private student loan programs are also different, and vary according to the bank or lending institution and your circumstances. Some programs offer only the standard medical school loans and others offer resident study. Some also are limited to the cost of the program, but regular loans that are not associated with education can help you cover living expenses, etc., while you are completing your medical school education.

We are proud to have iStudentLoan as our featured sponsor. They feature private student loans with borrowing limits of up to $40,000 per year and repayment is deferred until after graduation. For more on iStudentLoan visit their private student loans website.