private Student Loans for Medical students
What are Private Student Loans?
Private student loans are non-federal financial resources that can be utilized to cover educational expenses for medical and healthcare programs. These loans are available to undergraduate, graduate, and professional students, as well as to parents seeking to assist their children in meeting the costs associated with medical school or healthcare-related education.
Loans for Every Medical Student
When to Consider Private Student Loans
If you have exhausted your federal financial aid options—such as grants, scholarships, and federal student loans—and still face a financial shortfall, private student loans may be a practical choice. They can help cover the gap left by personal savings, part-time employment, or work-study programs, allowing you to concentrate on your education without distraction.
What are the advantages of private medical school loans?
higher loan amounts
Depending on the lender, you may be able to borrow up to your school’s cost of attendance, which isn’t possible with some federal loans.
No application deadline
You can apply for private loans at any time, making them more flexible than federal loans.
lower interest rates
If you have excellent credit and a good income (or a cosigner with those qualifications), you may qualify for a lower interest rate on a private loan.
What you may need to get started
How to Apply for a private student loan
compare key features
get prequalified
submit an application
How Do Private Student Loans Operate
Private student loans provide an essential lifeline for financing your medical education when federal student aid falls short. Here’s a closer look at their functionality:
Credit-Based Assessments:
Your credit history and score will be evaluated to determine your eligibility and interest rates. A higher credit score often leads to lower rates, which can reduce your overall financial burden.
Interest Rate Options:
You can choose between fixed interest rates, which remain constant throughout the life of the loan, or variable rates, which may fluctuate based on market conditions.
High Borrowing Limits:
Unlike federal loans that impose strict borrowing caps, private loans may allow you to borrow up to the total cost of attendance, making them particularly beneficial for students in high-tuition medical programs.
Cosigner Benefits:
Adding a cosigner can improve your chances of approval and help secure better rates, especially for undergraduate students with limited credit history.
Repayment terms vary:
Repayment options for private student loans vary significantly. Sometimes, you may be required to start making payments while you are in school or postpone payments until after graduation.
frequently Asked Questions (fAQ)
As a parent, can I take out a student loan for my child?
Certainly, parents can apply for loans to help cover their child’s educational expenses. It is vital to note that parents hold sole responsibility for repaying these loans and must carefully consider their financial situation before committing to any loan.
How do I apply for a federal student loan for medical school?
If you’re ready to apply for a federal medical school loan, you must complete the Free Application for Federal Student Aid (FAFSA). Your school uses this information to determine your eligibility for federal financial aid, including loans.
To complete the FAFSA, visit the Federal Student Aid website and log in. You’ll need to provide personal and financial information, including past federal tax data and documentation regarding bank accounts, investment portfolios, and other assets.
What types of federal student loans can I get for medical school?
Medical students may qualify for two types of federal student loans: Direct Unsubsidized Loans and Graduate PLUS loans.
Both types are available to graduate and professional students, regardless of financial need, with only the Grad PLUS Loan requiring a credit check. While your credit score is not a factor, you cannot have an adverse credit history, including delinquencies, defaults, foreclosures, or wage garnishment within the past five years.
Do I need to pay student loans while I’m in medical school?
Typically, you don’t have to make loan payments while still in school. Federal loans – and most private lenders offer in-school deferment to borrowers who meet certain minimum requirements, such as enrolling at least half-time.
This means you likely won’t need to make any payments on your med school debt until at least six months after you graduate, which is the typical student loan grace period. Depending on your loan, you may even be able to defer payments until after you complete your residency.
However, interest usually begins accruing as soon as you receive the loan. If your budget can accommodate it, making interest-only payments while you’re in school can help reduce your overall costs.
What are the eligibility requirements for private medical school loans?
Good credit: While most federal loans don’t require any credit history, private lenders prefer borrowers with at least average credit. You’ll likely need a credit score in the mid-to-high 600s, although some lenders cater to borrowers with lower scores. However, loans for those with low credit typically have higher interest rates and less favorable terms.
Verifiable income: Private lenders usually require borrowers to provide proof of income; some lenders even impose a minimum income requirement.
Low debt-to-income ratio: Your debt-to-income ratio (DTI) compares your monthly debt payments to your monthly income. Borrowers generally need a DTI below 50% to qualify for a private loan, although a DTI below 36% is considered ideal.
Will medical student loans affect buying a house?
Having student loans does not automatically disqualify you from securing a home loan. Many lenders have specific provisions for calculating debt-to-income (DTI) ratios that are more favorable to medical professionals.
More Than Physician Personal Loans
Alongside physician personal loans, we have high-interest checking and savings accounts with competitive rates and low fees. You can also take advantage of our interest-bearing health savings account (HSA) to reduce your medical expenses. With our HSA, you can contribute pre-tax dollars and use them to pay for qualified medical expenses without any additional taxes. Start saving today!
Ready to achieve your financial goals? Choose from our selection of financial products – one or all – and start your journey towards success. Get in touch with us today and discover more about our offerings.
PAYROLL PLUS ACCOUNT
Give your paycheck a boost!
Get the best of both worlds – the convenience of Direct Deposit and an excellent rate of return.
JUMBO DEPOSIT ACCOUNT
Your savings, safe and secure.
Maximize your savings potential with our high-yield savings account, offering flexibility and full FDIC insurance for up to $7 million in deposits.
HEALTH SAVINGS ACCOUNT
Convenient health funds.
An interest-bearing account specially designed to help you save up for current and future qualified medical expenses. (Can be paired with a high-deductible health insurance plan to maximize savings.)
PHYSICIAN HOME LOANS
Your path to home ownership.
Get up to $2 million in mortgage financing with custom solutions crafted specifically for doctors.
Give your paycheck a boost!
Get the best of both worlds – the convenience of Direct Deposit and an excellent rate of return.
Your savings, safe and secure.
Maximize your savings potential with our high-yield savings account, offering flexibility and full FDIC insurance for up to $7 million in deposits.
Convenient health funds.
An interest-bearing account specially designed to help you save up for current and future qualified medical expenses. (Can be paired with a high-deductible health insurance plan to maximize savings.)
Your path to home ownership.
Get up to $2 million in mortgage financing with custom solutions crafted specifically for doctors.
Disclaimers:
All loans are subject to credit approval.
Not available in all states. Prequalified rates are not an offer of credit.
