Medical school is expensive. According to the AAMC Medical Student Education: Debt, Costs and Loan Repayment Fact Card 2021, a majority of students across the nation graduate medical school with at least $100,000 or more in debt. Half of medical students graduate with $200,000 or more in debt.
While these statistics can be daunting, there are ways you can finance your medical education and pay for medical school without going broke. Here are 5 tips to make paying for medical school more manageable.
1. Reach out to a Medical School’s Financial Aid Officer Early
Nearly every medical school has a financial aid officer on staff to help medical students navigate their financial journey through medical school and beyond. These advisors may be able to assist you with your financial inquiries and management tips. We recommend that you reach out to each school you’re interested in directly and speak with their financial officers before applying, especially if you have specific questions. Researching each school’s financial aid options can serve as an important factor in determining which schools you should apply to.
2. Start with Money You Don’t Need to Pay Back
Beyond private funding, the best way to pay for medical school is with funding you don’t need to pay back, including medical school scholarships, grants, and awards. Unfortunately, there is no central database for all scholarships, so you will need to creatively search all possibilities. Scholarships may be specific to a medical school, provided with service obligations, or offered on a local, state, or national level.
Many universities have their own scholarship programs, so start by checking out the websites of the medical schools you’re interested in for financial aid opportunities. The medical school’s financial aid office is a great resource for school-specific and local grants as well as scholarships. On a local level, some towns and cities have organizations that support tuition for local students if they graduated from a certain college or are still a resident.
It’s important to look beyond more traditional, merit-based scholarships as well. Military scholarships support medical school tuition and expenses in exchange for commitments to serve as a doctor in the military, and National Health Service Corps scholarships offer medical school tuition and expenses for those who commit to working in medically underserved areas when beginning their career as a health care provider.
3. Get Loan Savvy
Familiarize yourself with the differences between federal and private loans—as well as their different interest rates, fees, processing rates, and more. Tools such as The MedLoans® Organizer and Calculator(https://students-residents.aamc.org/financial-aid-resources/medloans-organizer-and-calculator-mloc) are available to help both medical students and residents organize and track information like student loans.
Students can also consider applying for federal aid. Filling out the Free Application for Federal Student Aid (FAFSA) might not be the first thing that comes to mind when applying for medical school, though it’s often a first step for those completing their undergraduate degrees. Medical schools use the FAFSA to determine aid eligibility based on financial needs, so including the school code of medical schools you’ve applied to will help ensure you receive as much financial aid as possible. Once you have filled out the FAFSA, you can also receive one of the federal loans available to medical students, including HRSA Primary Care, Direct Unsubsidized, and Direct PLUS. Federal loans often have flexible repayment terms and competitive interest rates, as well as the potential for debt consolidation as well as debt forbearance, which some students take advantage of during their residencies.
We also suggest looking into loan forgiveness programs after residency. One option is the Public Service Loan Forgiveness Program, available to physicians employed by a nonprofit or government organization and who had made all their payments for 10 years among other criteria.
4. Establish a Budget
One of the simplest, yet ultimately effective, ways for medical students to manage their finances throughout their medical education is to create—and stick to—a budget. Budgeting for fixed expenses like rent and insurances along with variable expenses such as groceries and gas can prevent you from requesting more loans than necessary. Check out this fillable budget worksheet.
5. Find Balance
Much like with other elements of your life as a medical student, finding balance is essential. While it’s important to be financially smart during the long journey to becoming a physician, you will get the most out of your medical school experience if you take time—and budget accordingly—to do the things that make you happy and healthy. Whether it’s indulging in a nice meal at a restaurant or taking the opportunity to travel, find the balance you need to make smart decisions on the road to financial success without sacrificing your personal and mental health.