Medical School Costs and Funding Strategies

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• Going to medical school in the US can be extremely expensive. 
• From scholarships to loans, there are plenty of options to pay for a medical education.
• In some cases, you can avoid paying tuition altogether.

Medical school in the US is very expensive. You can easily rack up hundreds of thousands of dollars in debt while earning your degree. There are, however, plenty of options to ease the financial pain of pursuing a medical career.

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How much does medical school cost?

The average total cost of medical school is $218,792, and the average yearly cost of medical school is $57,574, according to the Education Data Initiative. Total costs can vary widely by institution type and location, ranging from $159,620 for in-state public schools to $256,412 for out-of-state private schools.

 2023-24 annual tuition at 10 top US medical schools 

Other medical school costs

While t​uition makes up the bulk of a medical student’s educational expenses, location also has a very big impact on the ultimate cost of a medical degree.

Your cost of living can vary greatly depending on whether you live in a big city or in a rural area. For example, the average rent for a one-bedroom apartment in New York was $4,317 as of October 2023. That compares to $895 for a one-bedroom apartment in Iowa City, according to data compiled by Zumper, a website that connects renters and landlords.

Of course, in New York you may not need a car. In Iowa City, that could be a real cost that comes with fluctuating gas prices, and auto insurance and maintenance costs. You also have to eat. Grocery prices are nearly 20% higher in New York versus Iowa City, according to Numbeo, a crowd-sourced platform that compiles cost of living data.

The cost of textbooks and supplies varies depending on your school and which year you are in. At UCLA, the cost for the first year is estimated at $3,510. That compares to the third year with an estimated cost of $1,629. At Harvard, the estimate is at $2,607 for the first year and $1,282 for the third.

And then there are the exams and licensing fees.

United States Medical Licensing Examination (USMLE) parts 1 and 2 cost about $660 each in 2023, going up to $670 in 2024. Step 3 costs $915 in 2023 going to $925 in 2024. Licensure fees range from state to state. In New York, they cost $735 for the initial application fee. In Iowa, that will run you $450.

There are also indirect costs to consider. Take insurance, for example. Medical schools should require that all medical students have an active health insurance policy. Schools should offer a policy, but medical students should be allowed to select a personal policy after providing documentation that the policy provides comparable coverage. 

How can I pay for medical school?

There are many options when it comes to paying for medical school. 

Scholarships and grants abound and can vary greatly in terms of eligibility requirements and what they can be used for, from tuition to travel for activities like conferences. Scholarships and grants come in all shapes and sizes, and they can add up over time if you apply and qualify for more than one. 

You can start your search using the best scholarship websites such as FastWeb and at the US Department of Education’s student aid website. The Association of American Medical Colleges(AAMC) also has a database with opportunities.

Local hospitals, religious institutions, local business, nonprofits, and others may also offer scholarships, so it pays to dig around. And don’t forget to check with your medical school. Many of them offer aid to students in financial need.

Federal student loans are available to med students. File a Free Application for Federal Student Aid (FAFSA) to see what programs might be available for you. You could qualify for:

• Federal Direct Unsubsidized Loans: Federal Direct Loans are unsubsidized, meaning you’re responsible for paying all the interest on these loans.
• Federal Direct Graduate PLUS Loans: You may be able to get a PLUS Loan for funds beyond Federal Direct Loans. PLUS Loans are also unsubsidized. They tend to have a higher interest rate than Federal Direct Loans.
• Health Resources and Services Administration (HRSA) Primary Care Loan: This is a school-based program that offers loans for medical students who demonstrate financial need. 

Institutional aid comes in the form of support provided by your school directly. Some schools cover all costs no matter the need, including New York University’s Grossman School of Medicine, Kaiser Permanente, and the University of Central Florida College of Medicine.

“Someone who wishes to enroll in medical school and minimize his/her education expenses can approach a major health care system such as Kaiser Permanente, which has an associated medical school,” says Dr. David Lenihan, the chief executive officer of Ponce Health Sciences University of Puerto Rico. “In exchange for his/her tuition being paid for by the healthcare system, the student can offer to work in a medically underserved region within the healthcare system’s geographic coverage area for five years once his/her residency has been completed.”

Such arrangements are beneficial to all involved parties: students can minimize or possibly eliminate medical school education expenses and the health system would be guaranteed that a capable, ambitious and creative new doctor would be ready to deliver his/her skills and services in a locale that is in need of talented medical practitioners, Lenihan said.

State-based programs can also be beneficial. Apply through FAFSA to see if you’re eligible for any state-based loans or other financial aid. Twenty-eight states and Washington, DC, offer loan repayment programs for medical students.

Military scholarships are another option for med students. The US Army, for example, could offer a scholarship, stipend program or educational loan repayment, as well as the ability to train alongside dedicated healthcare professionals. The F. Edward Hébert Armed Forces Health Professions Scholarship Program, for example, pays 100% of tuition, plus required books, equipment, most academic fees, and a monthly stipend of $2,000. Qualifying medical and dental students are also eligible to receive a $20,000 sign-on bonus.

You will have to fulfill a service commitment for the funding. The active duty service obligation to the U.S. Army is one year of service for every year you receive the scholarship.  

Residency or fellowships are a part of med school. Both are a continuation of your medical school training. You may also need financing during this time. You can use student loans or a line of credit, though note that for the latter, interest will start to accumulate immediately.   

You may want to consider a work-study program. Weill Cornell, for example, has a work study program with funding earmarked for medical students during the summer months between their first and second academic years.   

Medical school loan repayment and forgiveness programs

The Public Service Loan Forgiveness (PSLF) program offers forgiveness of qualified federal student loans after 120 payments are made while employed full time at a 501(c)(3) non-profit or government employer. PSLF can erase much of your initial debt balance tax-free, and some residency programs are 501(c)(3) organizations, allowing physicians to start making qualified payments as soon as residency starts.  

The Health Resources and Services Administration provides grants to assist states in operating State Loan Repayment Program (SLRP) for primary care providers working in Health Professional Shortage Areas (HPSA). The New Hampshire State Loan Repayment Program, for example, provides funds to health care professionals working in areas of the state designated as being medically underserved and who are willing to commit and contract with the state for a minimum of three years (or two if part-time). 

Finally, the National Health Service Corps (NHSC) is a federal program administered by the Health Resources and Services Administration (HRSA) that provides scholarships and loan repayment to healthcare professionals practicing at approved sites located in/or serving Health Professional Shortage Areas (HPSAs) throughout the United States. 

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