All you need to know about medical student loans

If you're planning to study at a Medical School, you need to know that it's a very expensive degree. Fortunately, there are several loans that take your situation into account.

Medicine is a vocation -which is laudable, by the way- but a very expensive degree. Most students get medical school loans in order to complete their studies. There are several options to take into account for each particular situation. Here's a quick review:

The first step you should take is trying to apply for scholarships and grants. Once you've exhausted these options, you should start with federal loans. There, you'll find Direct Subsidized and Direct Unsubsidized loans. You need to prove that you're in a financial need to qualify for the first option. 

In the first case, the loan comes with an interest subsidy. This means that the government will pay for your loan's interest while you’re in school and also into repayment. In the second one, the interest will begin to accrue right away. The interest rates can vary between 4% and 8%. 

You can also look into Direct Plus Graduate Student Loans, which can provide enough financial resources to help you finish your medical education's payment. Keep in mind that they offer higher interest rates than Federal Loans.

You've also got the possibility to ask for Private Loans, also known as Alternative Student Loans. They check your credit before accepting your application. If you've got good credit, you may have a lower interest rate than the Federal Loans. Another benefit that you can find here is that there are higher borrowing caps. You could even cover 100% of the cost of attendance with this loan.

These last loans have some drawbacks that need to be pointed out. If you go for this kind of loan, you're ineligible for income-driven repayment or federal forgiveness. Additionally, private loans don't offer interest subsidy. Interest begins from day one can add up to a lot of money.

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