Best Medical School Loans of May 2024 – Forbes Advisor

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.

Loan terms: Terms of 10 to 25 years are available, depending on the repayment plan.

Loan amounts: Loan amounts up to $20,500 per year and $138,500 in aggregate are available, including loans used for undergraduate study.

Eligibility: You 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).

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%.

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: AscentFunding.com/Ts&Cs. Rates are effective as of 5/1/2024 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 rates require interest-only payments, the shortest loan term, a cosigner, and are only available for our most creditworthy applicants and cosigners with the highest average credit scores. Actual APR offered may be higher or lower than the repayment examples above, based on the amount of time you spend in school and any grace period you have before repayment begins.

**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.

Loan terms: 5, 10 or 15 years

Loan amounts available: $1,000 to $350,000 (depending on degree)

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

College Ave offers a solid all-around private loan product with a few unique features. Borrowers can choose an eight-year term, which is in addition to the typical five-, 10- and 15-year terms many lenders provide. Borrowers can also access an extended six-month grace period beyond the initial payment-free six months allowed after separating from school.

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

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

Eligibility: Applicants must have a minimum credit score in the mid-600s.

Forbearance options: Up to 12 months of forbearance is available, in three- to six-month increments

Co-signer release policy: Available after 24 payments

*Borrowers with a co-signer who choose the shortest repayment term available and who make full monthly payments while in school qualify for the lowest rates.

1 – College Ave Student Loans products are made available through either Firstrust Bank, member FDIC or Nationwide Bank, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.

2 – All rates shown include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.

3 – Cover up to 100% of your cost of attendance as certified by your school and less any other financial aid you might receive. Minimum $1,000.

Sallie Mae medical loans offer loans from $1,000 up to the total cost of attendance. You’ll pay no origination fee or penalty for paying off your loan before its due date. What’s more, you’ll receive a 0.25% rate discount when you enroll in autopay.

Borrowers can qualify for a Sallie Mae medical loan even if they’re attending school less than half-time, which not all lenders allow. After graduation, borrowers also have access to a few hardship repayment programs beyond forbearance, including a rate reduction or one year of interest-only payments.

Sallie Mae’s medical loan offers a comparatively short time period—12 months—after which primary borrowers can apply to release their co-signers.

Loan terms: Terms up to 20 years are available.

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

Eligibility: Borrowers are eligible if they’re attending full-time, half-time or less than half-time. Applicants must be in an M.D., D.O., D.V.M., V.M.D., or D.P.M. program at participating degree-granting schools.

Forbearance options: Sallie Mae offers a 36-month grace period and 48 months of deferment.

Co-signer release policy: Co-signer releases are available after 12 on-time monthly payments.

PNC Bank offers an extra-generous 0.50% interest rate discount for making automatic payments, and it provides a 12-month loan modification program for borrowers in financial distress (in addition to 12 months of forbearance). Loan modification lowers the interest rate and monthly payment charged.

It also offers co-signer release, though after an even longer period than Citizens Bank’s policy: 48 months.

Loan terms: 5, 10 and 15 years

Loan amounts available: Up to $50,000 annually, with an overall maximum limit of $225,000

Eligibility: Does not disclose credit score or income requirements.

Forbearance options: Up to 12 months of forbearance available.

Co-signer release policy: Co-signers can be released from the loan after 48 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.

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 offers a fee-free private loan option—no origination fees and no late fees—and borrowers have the ability to skip² one monthly bill every year, in addition to applying for standard forbearance when necessary. Borrowers have multiple repayment terms to choose from, and graduate students receive a nine-month grace period³ before they must make payments after graduation, which is longer than the typical six-month grace period.

Earnest doesn’t have a co-signer release program. That means borrowers who use a co-signer must keep that person on the loan unless they refinanceit into their own name.

Loan terms: 5, 7, 10, 12 or 15 years⁴

Loan amounts available: $1,000 up to total cost of attendance (no aggregate loan amount listed).

Eligibility⁵: Students must be attending school at least half-time. International students can apply with a U.S. citizen co-signer.

Forbearance options: Available for up to 12 months throughout the loan term

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, or FinWise Bank, Member FDIC. One American Bank, 515 S. Minnesota Ave, Sioux Falls, SD 57104. Finwise Bank, 756 East Winchester, Suite 100, Murray, UT 84107

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, FinWise 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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