Paying for medical school is a major financial commitment. Understanding the differences between federal, institutional, primary care, and private loans can help you minimize borrowing costs and preserve repayment options after graduation.

Before borrowing, look for scholarships, grants and other funding that you won't have to repay. Then compare loans based on more than the interest rate. Consider borrowing limits, fees, repayment options, borrower protections and whether the loan could qualify for forgiveness or repayment assistance.

Different loans serve different purposes. For many students, federal loans are the place to start because their rates and eligibility rules are standardized and they offer federal repayment protections. Other programs, including Primary Care Loans and private medical school loans, can fill different needs.

Direct Unsubsidized Loans

Direct Unsubsidized Loans are federal student loans available to eligible graduate and professional students regardless of financial need.

How much can medical students borrow?

Beginning July 1, 2026, eligible professional students can generally borrow up to $50,000 per year, with a $200,000 aggregate limit for graduate and professional borrowing. A separate $257,500 lifetime federal student loan limit also applies to borrowers who receive a loan on or after July 1, 2026.

Your actual eligibility may be lower depending on your school's cost of attendance, other financial aid and previous borrowing.

What is the interest rate?

Federal student loan rates are set for each academic year. Once a Direct Unsubsidized Loan is made, its rate is fixed for the life of that loan.

For graduate and professional Direct Unsubsidized Loans first disbursed from July 1, 2026, through June 30, 2027, the fixed interest rate is 8.07%.

Because rates change for new loans from year to year, check Federal Student Aid's current interest rates before borrowing.

What happened to Grad PLUS loans?

Historically, Grad PLUS loans allowed graduate and professional students to borrow up to their school's cost of attendance, minus other financial aid.

Federal law changed this program beginning July 1, 2026. Grad PLUS loans are generally no longer available to new graduate and professional student borrowers.

A limited exception may apply to students who were enrolled in their current program by June 30, 2026, received a Direct Loan for that program before July 1, 2026, and remain continuously enrolled in the same program at the same school.

Students who believe they qualify for this exception should talk with their medical school's financial aid office and review the latest information from Federal Student Aid.

This change makes it especially important to understand your school's total cost of attendance and calculate whether federal borrowing limits will leave you with a funding gap.

Primary Care Loans

The federal Primary Care Loan (PCL) program is designed for eligible students who plan to practice primary care.

Unlike Direct Loans, these loans are administered through participating medical schools, so availability depends on your institution and available funding.

How much can you borrow?

PCL awards are based on financial need and your school's available funding. The amount of PCL funding you receive, together with your expected contribution, generally cannot exceed your school's calculated cost of attendance.

Ask your medical school's financial aid office whether it participates in the program and how much funding is available.

What is the interest rate?

Primary Care Loans have historically carried a 5% annual interest rate, making them potentially attractive compared with other medical education loans.

Verify current terms with your financial aid office and the Health Resources and Services Administration (HRSA) before accepting a loan.

Before accepting a Primary Care Loan, make sure you understand exactly which specialties and practice arrangements satisfy the program's requirements and what happens if your career plans change.

Private student loans are offered by banks, credit unions and other private lenders rather than the federal government.

They can help cover a gap between your medical school's cost of attendance and your other financial aid, but their terms vary considerably from lender to lender.

How much can you borrow with a private medical school loan?

Many lenders allow qualified borrowers to finance up to their school's certified cost of attendance minus other financial aid, although individual and lifetime borrowing limits vary by lender.

That doesn't mean you should automatically borrow the maximum available. Estimate what you'll actually need for tuition, fees and essential living expenses before deciding how much to accept.

What are typical private student loan interest rates?

There isn't one standard private student loan rate.

The lowest advertised rate is generally available only to borrowers who meet the lender's strongest credit criteria, sometimes with additional discounts.

Because private rates change frequently, rather than relying on a rate published here, compare current offers through multiple lenders and independent comparison resources.

How do private student loan lenders evaluate applicants?

Unlike federal Direct Unsubsidized Loans, private loans are underwritten based on the borrower's financial profile.

Medical students often have limited income and relatively short credit histories. That can make it harder to qualify independently for a lender's best rates even if you have excellent future earning potential.

Some lenders have underwriting programs specifically designed for medical students and may consider your degree program and expected future earnings differently than a traditional consumer lender.

Should you use a cosigner for a private medical school loan?

A cosigner is someone who becomes legally responsible for repaying your loan if you don't.

But cosigning creates a substantial financial obligation for the other person. The loan can appear on the cosigner's credit report and potentially affect their ability to borrow. Missed payments can damage both your credit and your cosigner's credit.

Before using a cosigner, ask the lender:

1. How much lower is my rate with this cosigner?
2. Can I qualify without one?
3. Does the lender offer cosigner release?
4. After how many qualifying payments can I request release?
5. What credit and income requirements will I need to meet for release?
6. Can deferment or forbearance affect my eligibility for cosigner release?
7. What happens to the loan if my cosigner dies or becomes disabled?
8. Will my cosigner receive statements or notices about the loan?

Don't assume that "cosigner release available" means release is automatic. Read the lender's actual eligibility requirements before signing.

For most students, the comparison isn't simply about which lender offers the lowest interest rate.

A private lender might offer a highly qualified borrower a competitive rate, but refinancing or replacing federal borrowing with private debt can mean giving up valuable federal benefits.

Private loans don't generally provide the same protections. Each lender establishes its own repayment, deferment and hardship policies.

That means a slightly lower interest rate isn't automatically the less expensive—or less risky—choice.

Interest rate matters, but comparing rates requires some context.

Federal loan rates

Federal Direct Loan rates are determined by federal law. The rate for new loans changes annually, but the rate on an individual loan is fixed after it's made.

That means your credit score, income and choice of medical school don't determine your Direct Unsubsidized Loan rate.

Check: Federal Student Aid — Current Interest Rates

Private loan rates

Private lenders set their own rates. Your offer may depend heavily on your credit profile and your cosigner's, if you have one.

When comparing private loans, try to obtain personalized rate estimates from several lenders. If available, look for lenders that let you check potential rates with a soft credit inquiry before submitting a full application.

Compare loans using the same:

• Amount borrowed
• Fixed or variable rate type
• Repayment term
• In-school payment option
• Cosigner assumptions

Otherwise, two advertised rates may not represent comparable loans.

When deciding how to pay for medical school, consider funding sources roughly in this order:

The right order can differ depending on the terms attached to a particular program. For example, a loan with a service commitment may be a great fit for someone committed to primary care but a poor fit for someone who isn't certain about specialty choice.

Your medical school's financial aid office can help you compare the specific funding available to you.

When you're choosing a loan, don't evaluate repayment based only on your expected income as an attending physician.

You'll get there—but residency comes first.

Ask what your monthly payment could be during residency and whether the loan provides flexibility if your income is substantially lower than it will be later in your career.

Borrowing $1 today can also mean repaying considerably more than $1 after years of interest. Before accepting additional debt, use a student loan calculator to estimate:

• Your balance at graduation
• Interest accrued during medical school
• Your projected balance after residency
• Monthly payments under different repayment terms
• Total interest paid over the life of the loan

Understanding those numbers before borrowing can help you make a decision that supports both your medical education and the career you want afterward.

Once you graduate, loan repayment typically begins after a 6-month grace period—but timelines and plans vary. Federal loans offer several repayment options, including:

• Fixed Payment Repayment Plans
• Income-Driven Repayment (IDR) Plans
• Public Service Loan Forgiveness (PSLF)

If you choose family medicine and work in a nonprofit hospital or underserved community, you may qualify for PSLF or state-level repayment assistance programs.

Private loan repayment terms will depend on your lender. Contact them early to explore options like deferment or interest-only payments during residency.

Being proactive and informed now can relieve stress later. Remember, repayment is a marathon, not a sprint.

Choosing the right medical school loan is more than just a financial decision—it’s part of building the future you want in family medicine. Take the time to explore your options, ask questions and plan ahead. With the right tools and guidance, you can confidently invest in your education while staying focused on the goal: becoming a trusted physician who makes a meaningful difference.