Loans
Student loans are the primary source of funding for medical school, so it is important to learn the differences among loan programs. Do not assume that all loans are the same. Consider initial processing fees, interest rates, interest accrual during medical school, deferment options after medical school, add-on fees at repayment, flexibility of repayment plans, and repayment incentives. Each of these factors can impact the long-term cost of a loan.
Several federal loan programs are available to medical students. Together, these programs may cover up to the full cost of attendance each year.
Alpert Medical School also offers several loan programs to students who qualify for institutional funding. All AMS loans offer the following benefits:
- No application fees;
- No interest accrual during medical school and during other deferment periods;
- Six-month grace period following graduation;
- Several deferment options, including a residency deferment benefit of one to three years;
- Fixed interest rates ranging from 5% to 9%, with most loans at 5% or 7%.
Students are encouraged to borrow conservatively by living frugally, by applying for private or federal scholarships, and by saving funds through employment prior to medical school and during vacation periods. Every $10,000 saved in borrowing reduces loan payments by approximately $120 per month.