10 Student Loans for Medical Students for 2023

 Medical students face a unique set of financial difficulties, such as high medical school tuition and comparatively low income during residency. Federal direct unsubsidized loans are the best first choice for financing for medical students. Any funding gaps that remain can be quickly filled with graduate PLUS loans. Hence, in this article, we’ll discuss some top federal and private student loans for medical students, their key elements as well as their pros and cons. 

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Top 10 Student Loans for Medical Students for 2023

Some medical students might be eligible for private medical student loans with a lower interest rate than a PLUS loan. The lowest rates will only be offered to borrowers with the best credit ratings and the least amount of debt. You might be able to repay a private loan quickly to prevent significant interest accrual because medical students frequently stand to earn sizable salaries after graduation. However, only do this if you do not intend to be eligible for loan forgiveness through federal programs or if you only borrow a small amount of money. Hence, the top ten private student loans for medical students are listed below.

1. Sallie Mae

The Sallie Mae program allows medical students to borrow unlimited amounts of money to support their medical training. Students who enroll in school less than half-time are also eligible to borrow. There is only one loan term available to borrowers, and it is a lengthy one: 20 years. However, there is no fee for paying off the loan early.

Key Elements:

• Fixed rates (APR):50% to 14.83%
• Variable rates (APR): 00% to 15.33%
• Loan term: 10 to 20 years
• Estimated minimum credit score:600
• Type of degree: Undergraduate and graduate
• Loan amounts: $1,000 – 100% of the total cost of attendance.
• Max. Loan amount: no maximum for medical students
• Grace period: 36 months

Pros 

• Release of the co-signer is possible after 12 timely monthly payments.
• Available long (36-month) grace period
• Option for a 48-month residency delay

Cons

• A single loan term is

2. Ascent

Ascent’s medical school loans offer a generous 36-month grace period. Borrowers are also eligible to receive a cash reward equal to 1% of the loan’s original principal. Ascent provides residents with low incomes relative to their future earning potential with a 48-month deferment period.

Key Elements:

• Fixed rates (APR): 5.44% to 16.43%
• Variable rates (APR): 5.98% to 15.32%
• Loan amounts: $2,001 – $200,000
• Repayment terms: 7, 10, 12, or 15 years
• Estimated minimum credit score:540
• Type of degree: Undergraduate and graduate
• Rate reduction: Discount of 0.25% off the interest rate for automatic payments.
• In-school repayment: Interest-only repayments, $25 monthly payments, and
  Deferred payments
• Grace period: 36 months

Pros

• 1% cashback following graduation
• Available long (36-month) grace period
• Option for a 48-month residency delay
• Release of co-signer after 24 consecutive on-time payments

Cons

•   max interest rates that are high

3. PNC

The Health & Medical Professions Student Loan from PNC Bank provides residency deferment as well as a 0.50% interest rate discount for automatic payments. You won’t be forced to repay the loan over a particularly long period of time because it has a variety of repayment terms. The bank is also involved in a number of community initiatives, such as PNC Grow Up Great. PNC provides opportunities to win $2,000 scholarships for educational costs to qualified undergraduate students.

Key Elements:

• Fixed rates (APR): 49% to 11.29%
• Variable rates (APR): 89% to 11.09%
• Loan term: 10 to 15 years
• Estimated minimum credit score: Not disclosed
• Rate reduction: Discount of 0.35% off the interest rate for automatic payment
• Type of degree: Undergraduate and graduate
• Max. Loan amount: $50,000 100% of the total cost of attendance.
• Grace period: 6 months

Pros

• A reduction of 0.50% in interest rates for automatic payments
• Prolonged period of residency deferment.

Cons

• International students cannot access this
• Release of the co-signer is possible after a comparatively long time (48 months).

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4. College Ave

College Ave’s tuition and fees are similar to Ascenters’ fixed-rate loans, but College Ave students have access to a wider range of repayment options. International students also need a Social Security number and a co-signer who is a citizen of the United States. They make it simple to make payments while you’re studying in the quantity that suits you, and they provide a range of options for different repayment terms. Unless you already have a solid credit history, you’ll likely require a cosigner to be approved for a loan from College Ave.

Key Elements:

•  Fixed rates (APR): 4.24% – 12.98%
• Variable rates (APR): 3.99% – 12.98%
• Loan amounts: $1,000 – $150,000
• Estimated minimum credit score: Undisclosed
• Repayment term: 5, 8, 10, 15, or 20 years
• Rate reduction: 0.25% discount for automatic payments
• Type of degree: Undergraduate and graduate
• In-school repayment: Full principle and interest payments, $25 monthly installments, interest-only payments, and deferred payments
• Grace period: 36 months

Pros

• Available long (36-month) grace period
• Option for a 48-month residency delay
• Release of co-signer after 24 consecutive on-time payments

Cons

•   To be eligible, international students must have a Social Security number. 
•  Charges late fees

5. Citizens Bank

There are several locations where Citizens Bank offers student loans. Citizens Bank offers just a six-month grace period. An extra 0.25% loyalty discount will be given for enrolling in autopay if the student loan borrower or their co-signer already has a Citizens Bank account.

Key Elements:

• Fixed rates (APR): 99% to 8.96%
• Variable rates (APR): 49% to 8.86%
• Loan term: 5, 10, or 15 years
• Estimated minimum credit score: Not disclosed
• Rate reduction: Discount of 0.25% off the interest rate for automatic payment
• Type of degree: Undergraduate and graduate
• Max. Loan amount:  $1,000 – 100% of the total cost of attendance
• Grace period: 6 months

Pros

• International students who have a cosigner who is a citizen of the United States
• There is an additional 0.25 percent loyalty discount on the interest rate.

Cons

• no estimate of the interest rate and soft credit check

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6. Discover Student Loans

Discover has some distinctive features for students interested in health professions. If you can demonstrate a 3.0 GPA for the duration of the loan, you will be eligible for no late fees and a “Good Grades” bonus. There is no prepayment penalty if the loan is repaid earlier than 20 years.

Key Elements:

• Fixed rates (APR): 5.99% to 10.99%
• Variable rates (APR): 5.49% to 10.34%
• Estimated minimum credit score: 750
• Rate reduction: Discount of 0.35% off the interest rate for automatic payment
• Type of degree: Undergraduate and graduate
• In-school repayment: Interest-only repayments.
• Minimum loan: $1,000
• Grace period: 9 months

Pros

• Discounts for those in the medical field
• Deferral of medical residency
• Prizes for academic success

Cons

• Limited options for loan terms

7. Prodigy Finance

Many international students are ineligible for federal student loans. They typically need a co-signer who is a citizen of the United States. A London-based company called Prodigy Finance provides private student loans to international master’s students and medical students. Interest rates are variable and can change in response to changes in the market.

• Fixed rates (APR): 13.23%
• Variable rates (APR): 9.54%
• Loan term: 7 to 20 years
• Estimated minimum credit score: Not disclosed
• Type of degree: Undergraduate and graduate
• Min. Loan amount: $15,000 minimum
• Grace period: 9 months

Pros

• No co-signer is necessary.
• Available to students from abroad
• There are several options for repayment in times of need

Cons

• Only varying interest rates are offered

8. Earnest

Earnest medical school loans include a nine-month grace period3, a 12-month deferment for the duration of a residency program, and the option to skip one monthly payment every year. The maximum interest rates are somewhat high. There is no co-signer release policy, and international students are not eligible.

Key Elements:

• Fixed rates (APR): 4.49% to 13.95%
• Variable rates (APR): 4.49% to 11.99%
• Estimated minimum credit score:650
• Type of degree: Undergraduate and graduate
• Loan amounts: $1,000 – 100% of the total cost of attendance
• Repayment terms: 5, 7, 10, 12, or 15 years
• Rate reduction: Discount of 0.25% off the interest rate for automatic payments
• In-school repayment: Deferred payments, $25 recurring installments, interest-only payments, and total principal and interest payments are all options.
• Grace period: 9 months

Pros

• Reasonably priced minimum interest rates
• Refinances its own loans
• Permits you to omit one payment each

Cons

• Relatively high financial threshold
• Unavailable co-signer release

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9. SoFi

SoFi offers a wide range of installment loans that include home loans, credit card consolidation loans, and student loans for nursing and medical students. It also gives borrowers access to an online tool that helps them figure out how and when they should ask for a raise.

Key Elements:

• Fixed rates (APR): 23%–11.26% (with autopay)
• Variable rates (APR): 87%–11.66% (with autopay)
• Estimated minimum credit score: Undisclosed
• Type of degree: Undergraduate and graduate
• Loan amounts: $1,000 – 100% of the school-certified cost of attendance
• Repayment terms: 5, 7, 10, or 15 years
• Rate reduction: Discount of 0.25% off the interest rate for automatic payments.
• In-school repayment: Deferred or full, interest-only, flat $25.
• Grace period: 6 months

Pros

• Unemployment protection
• Generous choices for payback
• No fees

Cons

• $5,000 minimum loan

10. 7.LendKey

 

LendKey is an award-winning digital lending company that helps students gain access to the $3.6 trillion consumer lending market. To hundreds of banks and credit unions, LendKey serves as an end-to-end digital lending partner. More than 13,000+ community financial institutions use their platform to engage in online lending. It is a website that links borrowers and lenders to find the best student loans for you.

Key Elements:

• Fixed rates (APR):03%–9.01%
• Variable rates (APR:49%–8.09%
• Estimated minimum credit score:660
• Repayment terms: 5, 10, or 15 years
• In-school repayment: Interest-only repayments or $25 monthly payments
• Type of degree: Undergraduate and graduate
• Minimum loan:$1,000

 Pros

• Several lenders offer at one location
• Up to 18 months of forbearance under hardship
• Low-income prerequisite
• Top-notch refinancing possibilities

Cons

• No academic suspension
• Adds late fees.

How Loans for Medical School Work

Medical students can use student loans for medical schools to pay for their education and related living costs. They frequently come with rates that are 5% to 8% higher than mortgage rates. In bankruptcy, student loans are almost never discharged. However, they may occasionally be let go due to death or irreversible disability.

Conclusion  

It is not a simple choice to take out loans for medical school. Your personal and professional lives will already be taxed by medical school, so adding hundreds of thousands of dollars in debt should give you pause. Before you sign anything, carefully consider the pros and cons of applying for and incurring debt.

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