Best Medical School Loans Of July 2023

Among graduate student loan options, federal direct unsubsidized loans are the best overall deal: Their fixed interest rate is one of the lowest you’ll find, and this type of loan isn’t credit-based and doesn’t require a co-signer. All eligible graduate borrowers qualify, and they receive the same rate regardless of credit history.

While there’s a chance the most creditworthy borrowers could get a lower interest rate with a private student loan, they’ll miss out on a range of consumer protections that might be useful in the future. Borrowers of federal direct unsubsidized loans have access to income-driven repayment options that can lower the amount due and loan forgiveness for those who work in public service fields.

Direct unsubsidized loans come with an origination fee of 1.057%, while most private graduate loans do not. But in many cases, the low interest rate and loan benefits make the fee worth it.

Extra Details

Loan terms: 10 to 25 years, depending on the repayment plan

Loan amounts available: Up to $20,500 per year and $73,000 in aggregate, including loans used for undergraduate study

Eligibility: Must be enrolled at least half-time in a school that participates in the federal direct loan program

Forbearance options: Forbearance available for up to three years in certain circumstances. Enrolling in an income-driven repayment program can lower monthly payments and result in loan forgiveness after 20 to 25 years.

Co-signer release policy: N/A

The federal graduate PLUS loan also offers wide-ranging benefits to borrowers, but fewer than direct unsubsidized loans offer. Since borrowing limits are higher for PLUS loans than direct unsubsidized loans, they’re an option to cover any funding gaps after you’ve maxed out direct unsubsidized loans for graduate study.

The graduate PLUS interest rate is slightly higher than the unsubsidized loan rate; the origination fee—4.228%, which comes out of the loan amount that’s disbursed to you—is much higher. PLUS loans are also the only federal loan type that require a credit check, but it’s possible to get a PLUS loan even if you’re determined to have an adverse credit history (more on that below).

Extra Details

Loan terms: 10 to 25 years, depending on the repayment plan

Loan amounts available: Up to total cost of attendance, minus other financial aid received

Eligibility: Must be enrolled at least half-time in an eligible school. Must not have an adverse credit history.

Forbearance options: Forbearance available for up to three years in certain circumstances. Enrolling in an income-driven repayment program can lower monthly payments and result in loan forgiveness after 20 to 25 years.

Co-signer release policy: None

Ascent’s medical school loans come with a generous 36-month grace period upon graduation. That can help newly minted doctors who need time to find a job or coordinate their finances after graduating. Ascent also offers a 48-month deferment period, during which residents, who receive low incomes compared to their future earning potential, can pause student loan payments (though this will extend the repayment term). Borrowers also can get a cash back reward of 1% of the loan’s original principal balance upon graduation.

Ascent’s maximum interest rates are higher than many other lenders’ on our list, though, topping out at over 13%.

Extra Details

Loan terms: 7, 10, 12, 15 or 20 years for variable-rate loans; 7, 10 or 12 years for fixed-rate loans

Loan amounts available: $2,001** to total cost of attendance; $400,000 in Ascent loans, in aggregate

Eligibility: Students pursuing a degree at least half-time are eligible. International students can apply with a U.S. citizen co-signer.

Residency deferment options: 48-month residency deferment available; grace period of 36 months available after graduation

Co-signer release policy: Available after 12 on-time monthly payments. See terms for eligibility.

*Ascent’s undergraduate and graduate student loans are funded by Bank of Lake Mills or DR Bank, each Member FDIC. Loan products may not be available in certain jurisdictions. Certain restrictions, limitations; and terms and conditions may apply. For Ascent Terms and Conditions please visit: www.AscentFunding.com/Ts&Cs;. Rates are effective as of 7/1/2023 and reflect an automatic payment discount of either 0.25% (for credit-based loans) OR 1.00% (for undergraduate outcomes-based loans). Automatic Payment Discount is available if the borrower is enrolled in automatic payments from their personal checking account and the amount is successfully withdrawn from the authorized bank account each month. For Ascent rates and repayment examples please visit: AscentFunding.com/Rates. 1% Cash Back Graduation Reward subject to terms and conditions. Cosigned Credit-Based Loan student must meet certain minimum credit criteria. The minimum score required is subject to change and may depend on the credit score of your cosigner. Lowest APRs require interest-only payments, the shortest loan term, and a cosigner, and are only available to our most creditworthy applicants and cosigners with the highest average credit scores.

**The minimum amount is $2,001 except for the state of Massachusetts. Minimum loan amount for borrowers with a Massachusetts permanent address is $6,001.

Citizens Bank provides an additional 0.25% loyalty discount—bringing the total interest rate discount with autopay to 0.50%—if a student loan borrower or their co-signer has an existing account with the bank. (Citizens Bank student loans are available everywhere, but checking and savings accounts are only available in Connecticut, Delaware, Massachusetts, Michigan, New Hampshire, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Vermont.)

Citizens Bank offers just a six-month grace period, and it does not give borrowers the option to get a rate estimate with a soft credit check.

Extra Details

Loan terms: 5, 10 or 15 years

Loan amounts available: $1,000 to $350,000 aggregate, including federal and private loans, for medical students

Eligibility: Students must be enrolled at least half-time. International students can apply with a U.S. citizen co-signer.

Residency deferment options: Borrowers can defer payments for up to eight years total, including residency

Co-signer release policy: After 36 on-time payments

Similar to Ascent, College Ave offers a 36-month post-school grace period and 48 months of residency deferment. Fixed-rate loan borrowers have access to more repayment terms than Ascent offers, and its maximum interest rates are lower. But College Ave doesn’t offer a similar graduation reward. International students must also have a Social Security number in order to qualify, along with a U.S. citizen co-signer.

Extra Details

Loan terms:5, 8, 10, 15 or 20 years

Loan amounts available: $1,000 up to 100% of the school-certified cost of attendance

Eligibility: Students may pursue a degree full-time, half-time or less than half-time. International students can apply with a U.S. citizen co-signer, but the student must also have a Social Security number.

Residency deferment options: Up to 48 months. Grace period of 36 months available.

Co-signer release policy: Available after 24 on-time monthly payments. Only U.S. citizen borrowers can qualify for co-signer release.

Sallie Mae, like College Ave, offers a 36-month grace period and 48-month residency deferment, plus no limit on the amount of loans medical students can take out. Students who attend school less than half-time are eligible to borrow, and those who use a co-signer can release the co-signer after 12 on-time payments—much faster than many other lenders offer.

Borrowers have just one loan term available to them, though, and it’s a long one: 20 years. But there is no prepayment penalty for paying off the loan earlier.

Extra Details

Loan terms: 20 years

Loan amounts available: $1,000 to up to total cost of attendance; no maximum for medical students

Eligibility: Students can attend school full-time, half-time or less than half-time. International students can apply with a U.S. citizen co-signer.

Residency deferment options: 48 months of residency deferment available; 36-month post-graduation grace period

Co-signer release policy: After 12 on-time monthly payments

Discover offers some unique features for health professions students: No late fees and a “Good Grades” reward of 1% of the disbursed loan balance if you can show you received a 3.0 GPA for the term covered by the loan. The loan also comes with a nine-month grace period.

But there’s just one repayment term option: 20-years, no option for co-signer release and no option to get an interest rate estimate with only a soft credit check. There is no prepayment penalty for paying off the loan sooner than 20 years, however.

Extra Details

Loan terms: 20 years

Loan amounts available: $1,000 up to total cost of attendance; aggregate loan limits apply, but Discover doesn’t specify how much

Eligibility: Students must attend school at least half-time. International students can apply with a U.S. citizen co-signer.

Residency deferment options: Up to five years of residency deferment available. Nine-month grace period offered.

Co-signer release policy: None

PNC Bank’s Health & Medical Professions Student Loan offers residency deferment and an interest rate discount of 0.50% for automatic payments, double what most lenders provide. It also comes with multiple repayment terms that max out at 15 years, meaning borrowers won’t be stuck repaying the loan over a particularly long time.

But the loan also comes with some restrictions: Its grace period is only six months, shorter than some other lenders’, and while it offers co-signer release, it takes 48 months to qualify.

Extra Details

Loan terms: 5, 10 or 15 years

Loan amounts available: Up to $65,000 per year; $225,000 aggregate loan limit, including both federal and private loan debt

Eligibility: Both student and co-signer must be U.S. citizens. Students must be attending school at least half-time.

Residency deferment options: Available up to a maximum of 10.5 years of total deferment throughout the loan term (including six-month grace period).

Co-signer release policy: After 48 on-time payments

Many international students don’t qualify for federal student loans, and they typically need a U.S. citizen co-signer in order to get approved for a private student loan. Prodigy Finance is a London-based company that offers private student loans to international master’s students without requiring a co-signer.

You must attend an eligible school in one of the 18 countries Prodigy Finance lends in. All interest rates are variable, meaning they can change with market conditions, and borrowers receive rate offers based on their course of study and future earning potential. The average rate, according to Prodigy Finance, is 7.3%. The loan comes with a 4% administration fee.

Prodigy Finance doesn’t lend to U.S.-based borrowers living in these states: Alabama, Arkansas, Connecticut, Delaware, Hawaii, Idaho, Indiana, Iowa, Maine, Michigan, Mississippi, Minnesota, Montana, Nevada, New York, North Dakota, Ohio, Rhode Island, South Dakota, Vermont, Washington, West Virginia and Wyoming.

Extra Details

Loan terms: 7 to 20 years

Loan amounts available: $15,000 minimum; maximum amount based on individual application

Eligibility: Must be a resident of an eligible state and country attending an eligible school either part-time or full-time

Forbearance options: Available for nine months. Borrowers with financial hardships may apply for an interest-free payment arrangement; those facing low incomes, medical emergencies, unexpected family responsibilities or unemployment can apply for $0 or reduced payments.

Co-signer release policy: N/A

Earnest medical school loans come with a deferment for the full length of a residency program and the ability to skip² one monthly payment every 12 months and a nine-month grace period³. But the maximum interest rates are on the high side. International students also are not eligible and there’s no co-signer release policy.

Extra Details

Loan terms: 5, 7, 10, 12 or 15 years⁴

Loan amounts available: $1,000 up to total cost of attendance

Eligibility⁵: Must be a U.S. citizen attending school at least half-time.

Residency deferment options: Deferment available for length of residency. Nine-month grace period after graduation.

Co-signer release policy: None

¹You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. For multi-party loans, only one party may enroll in Auto Pay. It is important to note that the 0.25% Auto Pay discount is not available while loan payments are deferred.

²Earnest clients may skip one payment every 12 months. Your first request to skip a payment can be made once you’ve made at least 6 months of consecutive on-time payments, and your loan is in good standing. The interest accrued during the skipped month will result in an increase in your remaining minimum payment. The final payoff date on your loan will be extended by the length of the skipped payment periods. Please be aware that a skipped payment does count toward the forbearance limits. Please note that skipping a payment is not guaranteed and is at Earnest’s discretion. Your monthly payment and total loan cost may increase as a result of postponing your payment and extending your term.

³Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school.

⁴Earnest’s Loan Cost Examples: These examples provide estimates based on principal and Interest payments beginning immediately upon loan disbursement. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $118.28) and a 11.69% APR would result in a total estimated payment amount of $21,290.40. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $126.82) and a 13.03% APR would result in a total estimated payment amount of $22,827.79.

These examples provide estimates based on interest only payments while in school. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $145.41) and a 11.69% APR would result in a total estimated payment amount of $26,173.03. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $156.59) and a 13.03% APR would result in a total estimated payment amount of $28,186.67. Your actual repayment terms may vary. Other repayment options are available.

These examples provide estimates based on fixed $25 payments while in school. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $169.92) and a 11.69% APR would result in a total estimated payment amount of $30,584.74. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $188.42) and a 13.03% APR would result in a total estimated payment amount of $33,915.55. Your actual repayment terms may vary. Other repayment options are available.

These examples provide estimates based on deferred payments. Variable APR: A $10,000 loan with a 15-year term (180 monthly payments of $174.79) and a 11.69% APR would result in a total estimated payment amount of $31,462.16. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $193.75) and a 13.03% APR would result in a total estimated payment amount of $34,874.28. Your actual repayment terms may vary. Other repayment options are available.

⁵Loan Eligibility criteria: Eligible students must: 1) For college Freshmen, Sophomores and Juniors, attend, or be enrolled to attend, a Title IV school full-time. For college Seniors and Graduate students, attend, or be enrolled to attend, a Title IV school at least half-time; and 2) be pursuing a Bachelor’s or Graduate degree. Earnest private student loans are subject to credit qualification, completion of a loan application, verification of application information, self-certification of loan amount, and school certification.

Responsible borrowing tip: Explore all scholarship, grant and federal options before applying for a private loan.

Earnest Private Student Loans are made by One American Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104.

Earnest loans are serviced by Earnest Operations LLC, 535 Mission St., Suite 1663 San Francisco, CA 94105, NMLS #1204917, with support From Navient Solutions, LLC (NMLS #212430). One American Bank and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America.

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