Managing medical school debt

Most medical students start their education journey because they feel a personal calling to become a physician. But making a plan for minimizing your medical school debt can make that journey look daunting.

The reality is that you can afford to pay for medical school and pursue the specialty of your choice. It is extremely rare for a physician to default on their student loans, even if the debt rises to six figures. Physician salaries in every specialty are among the highest of any profession.

Average medical school tuition for 2025-2026 was more than $35,000 at public institutions and more than $60,000 at private schools.Your cost will depend on several factors, from tuition fees and student loan interest rates to scholarships you qualify for and the cost of living where you live during medical school.

Tuition and living expenses breakdown

Tuition is a major factor when you’re planning for how much medical school will cost, but don’t forget to look at the cost of living in the area where you’ll spend those four years. Your medical school’s financial aid office and the local chamber of commerce are good sources to help you estimate the cost of rent, utilities, food and other living expenses.

Loan types and interest rates

There are many types of loans to help you pay for medical school and living expenses. Consider a mix of loan types from different lenders.

Federal loans usually have lower, fixed interest rates than many private loans. But be aware that the amount you can borrow each year through federal loans is capped.

Private loans might have variable interest rates that increase over time. They might also require repayment to start before you graduate.

Make time to consider how you’ll manage student debt before you start medical school, and revisit the plan periodically to see if you need to adjust any strategies to stay on track with your personal financial goals.

Budgeting and financial planning

Student loans are paid out in lump sums, so you’ll need to plan carefully to make sure the money lasts as long as you need it. When you budget for educational costs, don’t forget to include things like conferences, and USMLE or COMLEX-USA exams during medical school.

The AAFP has resources created specifically for medical students to make sure you start your journey to becoming a physician on a solid foundation.

Scholarships and funding options

Loans and savings aren’t your only funding options for medical school. There are many scholarship programs that can help, with qualifications that range from your background to where you are in your educational path.

Turn to the AAFP for help finding medical school scholarships that you qualify for.

Expert advice and webinars

In addition to all the resources here, the AAFP partnered with the Association of American Medical Colleges on two webinars to help you make smart financial decisions in medical school and beyond.

You’ll have a whole new set of financial decisions to make as you approach graduation and start planning for residency. The AAFP has what you’ll need to succeed then, too.

Preparing for residency and long-term financial stability

During residency, you’ll start being paid as a physician. With those paychecks will come new decisions for you to make about your finances. Will you start repaying student loans to keep the interest down, or seek postponement to start building your savings?

Get a start on those decisions with AAFP resources that will let you get a start on your long-term financial goals in residency and your early career.