Student Loan Options for Medical Students
The choice to go to medical school is a huge commitment, and will take a great deal of time and effort on the part of the student. Therefore, the student should not need to be worrying about finances when his or her entire future depends on performance in classes, labs, residencies, etc. There are many options for all students regarding loans, but the medical student has special considerations–these programs are length and expensive, and residencies can be problematic as well. In addition, the medical student simply does not have time for the level of study require plus a job.
Therefore, loan options for the medical student must be more flexible and allow for higher limits and other considerations. Many students are fond of the Stafford Loan program, which offers low rates, no fees, and high limits for the medical student. To qualify for the Stafford Loan, a student must:
1. Attend a Federal Family Education Loan Program approved school
2. Be a citizen of the
United States to a permanent resident if a non-citizen
3. Be enrolled at least half time and fulfill other requirements set forth in the Federal Stafford Loan Master Promissory Note
4. Submit a FAFSA form
The Stafford loans offer great benefits to borrowers that can save a lot of money. For one thing, you will not be required to make payments while in school. You can also combine all your Stafford loans into one consolidated loan, and there is no penalty for prepayment. Your limits are $38,000 annually (with a limit of $8,500 in subsidized loans), and a total of $189,125.
The Stafford Loan is a great place to start, but it may not be enough or you may find your limits are lower than the maximum. For students who need more than what the Stafford can provide, there are private loans designed for students that are also low rate, and offer some of the same features of the Stafford Loan that have made it so popular. The Alternative Student Loans Program (ALP) is one gap-bridging program that fills in where the
Stafford stops. It has the same requirements as the Stafford, but you may also have to meet additional criteria for the private lender. This loan covers allopathic and osteopathic schools only.
The rates on the private school loans are a little higher–prime rate plus margins during the repayment period (prime rate only during time in school)–so you should apply for the
Stafford first. Your limits, however, are designed to fill all gaps left by other loans–you can receive an annual maximum of the cost of tuition minus your other student loans and grants, and your lifetime maximum is $250,000 in total debt (including federal and private).
MEDLOAN® program used to be presented by AAMC and offered by Sallie MAE. This wass the only program sponsored by the AAMC (Association of American Medical Colleges) but no longer exists. AAMC provides a helpful page entitled FIRST for medical education, presenting FIRST offers a wide range of Financial Information, Resources, Services, and Tools for med school applicants and medical school students,.