Everything You Need To Know About Medical School Financial Aid

January 28, 2022

Everything You Need To Know About Medical School Financial Aid

The Savvy Premed

How Medical School Financial Aid Works

If you’re wondering how to apply for medical school financial aid, you can follow a three-step process:

1. Start with money you don’t have to pay back like scholarships, grants, fellowships, and assistantship positions.

2. Pursue federal student aid. The Free Application for Federal Student Aid (FAFSA) may help you obtain federal loans, grants, and aid from your college and state.

3. Consider private student loans.

Borrowing is often a necessary part of getting the education you need to begin your medical career. But it’s important to borrow responsibly so you can pay back your loans on time after you earn your degree.

Limit your borrowing to the amount you’ll need for the cost of tuition and related expenses. Evaluate what your anticipated monthly loan payments might be versus how much you expect to earn as a medical professional.

You can research your potential salary through professional associations and the U.S. Department of Labor.

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Medical School Financial Aid Calculators

If you hate math or you’re bad at budgeting on your own, here are a list of financial aid calculators that will help you stay balanced and organized:

Federal Student Aid Estimator

MedLoans® Organizer and Calculator (MLOC)

FIRST (Financial Information, Resources, Services, and Tools)

MD Financial Management

Additionally, several medical schools offer their own calculators and estimators:

Harvard Medical School

Vagelos College of Physicians and Surgeons

Mayo Clinic College of Medicine and Science

Case Western Reserve University School of Medicine

University of Virginia School of Medicine

Rowan University School of Osteopathic Medicine

Northeast Ohio Medical University (NEOMED)

Wayne State University School of Medicine

Yale University School of Medicine

So, make sure to check the available resources on each school’s website when weighing your difference acceptance options.

Medical School Financial Aid Timeline

A quick note - this information can seem foreign, but if you commit to doing a little of this list each day, you will soon start to figure out which programs make sense for you. We've organized this guide as a timeline by month to keep you on track.

JANUARY

Complete the FAFSA and Research Your Schools’ Financial Aid Options

1. Fill out the FAFSA (Free Application for Federal Student Aid)

2. The FAFSA is based on the previous year’s income and expenses (yours, not your parents). Since you probably haven’t filed your taxes yet, it’s okay to estimate what you think your numbers will be. Then, when you file your taxes, you can update the schools where you are accepted.

3. Accepted? Investigate the financial aid website of the medical school to see what resources they have for you. Here are 10 questions to guide your investigation.

FEBRUARY

Increase Your Financial Literacy and Find More Resources

1. Educate yourself on your options for paying for medical school.

The AAMC has developed a financial literacy program called FIRST (Financial Information, Resources, Services, and Tools) to help you.

AAMC Financial Aid – they also have cheesy videos that contain the information you need.

UMKC School of Medicine - a great FAQ about financial terms and options (bottom of page).

Start Medicine Money and Finances - one more solid article on options.

2. Search for scholarships.

Scholarships come from the medical schools themselves and independent competitions.

Independent scholarships to apply for:

Here’s a massive list of scholarships, fellowships, and other programs.

National Medical Fellowship Scholarships and Programs.

Scholarships for Disadvantaged Students.

Scholarships for Women.

Another large database of various pre-health scholarships.

Scholarships for DOs.

3. Consider loan forgiveness programs.

The three major ones are:

1) National Health Service Corps - a program that pays back your student loans in return for working with populations with limited access to care (full-time and half-time programs available).

2) National Institute of Health (research).

3) US Army Health Professions Scholarship Program, US Navy, US Air Force (military).

MARCH

Organize Your Personal Finances

1. We strongly recommend the free resource Betterment.com as a tool to help you save money for the future and organize all of your finances in one place.

2. Personal Capital is cool too.

3. So is Mint.com.

APRIL

Respond Promptly to Your Award Letter from Schools

Respond to your financial aid award from your medical school.

1. Financial aid award letters are sent around April 1. These contain the mixture of scholarships and loans that you are eligible for through the medical school. The financial aid in these letters is optional, so decide which parts you want to use. It’s important that you respond promptly to this letter, because if a school runs out of financial aid (given to other students), there will be none left for you!

2. After you file your taxes, contact your medical schools with the new information.

MAY

Seek Private Loans as a Last Resort

1. Apply for private loans if needed.

2. Private loans are usually the last resort after you’ve exhausted any possible federal loans and scholarship options. Private loans can help make up the difference between what you’ve been offered and what you have to pay.

Options include:

Wells Fargo MedCAP Loan, Discover Student Loans , Sallie Mae Graduate Loans

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Types of Medical School Financial Aid

Personal Savings

You can use savings to help pay for medical school. To determine how much you can contribute, you may want to create a budget to understand what your monthly expenses are. If you use your savings to help pay for medical school, make sure you still have money left to pay your bills and cover unplanned expenses.

Medical School Scholarships, Grants, and Assistantships

Some medical schools offer need-based grants as well as merit scholarships and assistantships for students. If you had a high GPA in college, you should research what scholarships and assistantship offerings are available. Look at the websites of the medical schools or talk to their financial aid offices.

Other Scholarships and Fellowships

Some medical associations and nonprofits offer financial aid, grants, and scholarships for current medical students. Check with them for more information. School department heads may be able to advise you on additional opportunities.

Service Programs

You may be able to get some of your medical school costs covered in return for working a set number of years for a government or military program. Your eligibility for these opportunities will depend on the area of medicine you choose to study.

Here are a few of the programs that may be available to you:

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National Health Service Corps (NHSC) Scholarship

Health Professions Scholarship Program (HPSP) funded by the military—Army, Navy, and Air Force—for health professions students, including medical students.

Public Service Loan Forgiveness (PSLF): If you took out federal student loans for medical school, you may be eligible for loan forgiveness if you work for a qualifying organization like a nonprofit, government org, or teaching hospital.

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FAFSA

To become eligible for federal financial aid to pay for medical school, you’ll need to fill out the FAFSA. The FAFSA could qualify you for the following:

Federal Direct Unsubsidized Loans: Medical students can borrow these loans (sometimes called “Stafford 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 if you need additional help above and beyond your Federal Direct Loans. PLUS Loans are also unsubsidized. They’re credit-based and usually have a higher interest rate than Federal Direct Loans.

Health Resources and Services Administration (HRSA) Primary Care Loan: This school-based program offers a few types of loans for medical students who demonstrate financial need. Check with your school to see if they participate.

Your FAFSA application can also qualify you for aid from your state or school, if it is available. Learn more about applying for graduate financial aid.

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Scholarships

AMERICAN MEDICAL WOMEN’S ASSOCIATION SCHOLARSHIPS

Amount varies
They range from offering assistance for travel abroad to awards for poster presentations

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THE NATIONAL HEALTH SERVICE CORPS SCHOLARSHIP PROGRAM

Tuition and fees coverage for up to four years
Students must be training in preparation to enter primary care health professions and be willing to work in underserved areas after graduation
Students must be U.S. citizens or nationals and eligible for federal employment

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TYLENOL FUTURE CARE SCHOLARSHIP

$10,000 to 10 students and $5,000 to 25 students.
Students with at least one year of school remaining, who are U.S. residents and who are or will be enrolled in a graduate program in medical school, nursing, and/or pharmacy

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WELLESLEY COLLEGE M.A. CARTLAND SHACKFORD MEDICAL FELLOWSHIP

Up to $11,000
Women of any nationality who have graduated from any American college or university are eligible to apply
Applicants must be interested in general medical practice, not psychiatry

THE WHITE COAT INVESTOR SCHOLARSHIP

Up to $70,000, split equally among ten students
Students cannot come from an online school background and must be enrolled full-time in a medical school or other professional program (law, dentistry, pharmacy, and others)
Schools must be located in the U.S., but students of any citizenship are eligible

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PHYSICIANS OF TOMORROW AWARDS

$10,000
Your school dean must nominate you for one of these awards; if you’re interested in being nominated, take it up with your school’s financial aid office
Each award has its own eligibility requirements

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USA MEDICAL AND SURGICAL SCHOLARSHIP PROGRAM

$1,500
To be eligible you must be studying: Medicine, Therapy, Emergency Medical Services, Laboratory Science, Medical Technology, Nursing, Health Care, Pathology, Radiology, Diagnostic Imaging, Pharmacy, Psychiatry, Psychology, Social Sciences, or other health-related disciplines

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Scholarships for Minority Groups

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THE BROWN MEDICAL AND EDUCATIONAL SOCIETY HEALTHCARE SCHOLARSHIPS

Amount varies
Must be an undergraduate or graduate student attending a U.S. four-year college or university pursuing a degree in healthcare (medical, nursing, allied health, etc.)
Must be Black/African American, Native American/American Indian, Hispanic/Latin American, or Asian/Pacific Islander
U.S. citizenship is required
Applicant must have a cumulative equivalent GPA of 2.5 or higher

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NATIONAL MEDICAL FELLOWSHIPS

Amount varies
Students must be an underrepresented minority in medicine (see the NMF website for full list)
Students also must be U.S. citizens or have DACA documentation, and must be enrolled in a graduate-level U.S. healthcare program

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CHINESE AMERICAN MEDICAL SOCIETY SCHOLARSHIPS

$5,000
For first-, second-, and third-year medical or dental students
Applicants must be current or pending CAMS Student members
Requires email application, including a letter from your school’s dean verifying your good academic standing

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THE HISPANIC HEALTH PROFESSIONAL STUDENT SCHOLARSHIP

Amount varies
Applicants are not required to be Hispanic, but an “affinity for the health of Hispanic communities and an interest in participating in NHHF Scholars Alumni activities is required”
In addition, applicants must be premier members of the National Hispanic Medical Association and have a GPA of 3.0 or higher
U.S. permanent residents, citizens, and DACA recipients are eligible

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MPOWER GLOBAL CITIZENSHIP SCHOLARSHIP

$10,000 and $2,000
International students who are legally permitted to study in the U.S. or Canada are eligible (includes DACA recipients and Green Card holders)
Not specific to medicine; applicants will be in a pool with students in many different fields

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THE PAUL & DAISY SOROS FELLOWSHIPS FOR NEW AMERICANS

$90,000 over two years
Students must be under 30 years old and be the child of parents born outside of the U.S as non-U.S. citizens
Not specific to medicine; applicants will be in a pool with students in many different graduate fields

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POINT FOUNDATION SCHOLARSHIPS

Amount varies
Students must be “‘out’ as a person who identifies as a member of the LGBTQ community” and enrolled as a full-time student in the U.S.
Citizens of any country are eligible

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DIVERSE MEDICAL SCHOLARS PROGRAM

$7,000
As the program’s name implies, you must identify as one of the following groups to be eligible: African American, Latino or Latina, Native American, Asian American (Vietnamese and Cambodian only)

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Other Types of Scholarships

LEOPOLD SCHEPP FOUNDATION SCHOLARSHIP

Up to $9,000
The scholarship website notes that the Foundation grants fewer applications to students in professional school than they do to other graduate students
Applicants must be younger than 40, have “a minimum 3.3 GPA on a 4.0 scale,” and be citizens or permanent residents of the U.S.

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JAMES “RHIO” O’CONNOR MESOTHELIOMA SCHOLARSHIP FUND

$1,000 scholarship every month to medical students
Students must submit a 700-1,500 word essay that answers pertinent questions related to cancer

Though there are plenty more scholarships, we hope that this is a great start to your search to cover a portion of the cost of medical school. The last thing you need to be worried about in one of the most rigorous educations possible is finance.

It is smart to talk to your school, as well as current and former medical students, about HOW THEY PAID FOR MEDICAL SCHOOL, and to implement a PLAN ON HOW TO AFFORD YOUR EDUCATION.

Grants

Many of the grants available to medical school students will be research grants, fellowships, or scholarships to fund their education.

Research grants are only there to fund certain types of research projects during medical school. However, there are other grants that are available to some students even if they are not completing a research project.

Medical students that are in need of funding should also consider fellowships, scholarships, and loan forgiveness programs as well.

The National Institute of General Medical Sciences (NIGMS) offers grants to medical students that are interested in pursuing careers in clinical and biomedical research.

The American Medical Association (AMA) offers a number of grants, scholarships, and fellowships. The AMA is a national association that is devoted to research and education efforts for medical students all over the country.

The Ford Foundation is a prestigious nonprofit organization that provides funding for many different causes, but they also offer a fellowship program.

The Roothbert Fund is a small volunteer-based organization in New York City that provides grants and scholarships to all students regardless of their race, class, gender, or major.

The Leopold Schepp Foundation provides grants and scholarships to students in a number of programs, including medical school. Medical school students are eligible to apply to their program to receive up to $8,500.

The New York Academy of Medicine offers grants to medical students attending a medical school in the New York Metro area. This includes institutions such Columbia University and New York University.

The Radiological Society of North America (RSNA) offers the Research Medical Student Grant, which is available to students that are members of the RSNA.

The American Medical Women’s Association (AMWA) is an organization that is present on the campuses of many medical schools. The AMWA offers local branch grants to selected female medical students that are a member of their group.

The American Association of University Women (AAUW) has a Selected Professions Fellowship for women to pursue education in fields where women have been traditionally underrepresented.

The Daughters of the American Revolution offers a couple of different grant and scholarship programs to female members of the organization.

The Latino Medical Students Association offers a scholarship to Latino students that are attending medical school in the US.

The Howard Hughes Medical Institute offers the Gilliam Fellowship for Advanced Study to students pursuing the medical sciences. It is designed for students from disadvantaged backgrounds or students from underrepresented minority groups.

The Japanese Medical Society of America (JMSA) offers numerous grants and scholarships to students of Japanese descent.

The United Negro College Fund (UNCF) offers a number of scholarships, grants, and fellowships to African American students attending universities all over the country.

Loans

Before we dive into the 6 best loans for medical school, let’s discuss all of your expenses throughout medical school to give you a proper gauge on how much $$$$ you’ll need:

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Average living expenses per month-

Rent: $1,098

Groceries: $355.50

Phone and Internet Bills: $165

Car payments: New cars: $568 / Used cars: $467

Subscriptions: $37.73

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Average tuition costs-

Private Medical School: $59,555 / Public Medical School: $49,842

Medical School Books and Equipment: $1,240

USMLE applications: $4,039

USMLE exams: $3,067

Residency interviews/traveling for interviews: $4,600

So what are your loan options? We’ll be going down the rabbit-hole from the best options to the worst, so buckle up please!

FEDERAL DIRECT UNSUBSIDIZED LOAN

Pros:

Loan terms: 10-25 years, depending on the repayment plan
Loan amounts available: Up to $20,500 per year and $73,000 in aggregate, including loans used for undergraduate study
Low fixed interest rate and no co-signer required in order to get the lowest rate
Income-driven repayment options that can lower the amount due and loan forgiveness for those who work in public service fields

Cons:

Charges an origination fee of 1.057%

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FEDERAL GRADUATE PLUS LOAN

Pros:

Loan terms: 10-25 years, depending on the repayment plan
Loan amounts available: Up to total cost of attendance, minus other financial aid received
Low fixed interest rate
Multiple repayment and forgiveness options available
High maximum loan amount

Cons:

Charges an origination fee of 4.228%
Requires a credit check

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Moving onto private loans...

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ASCENT

Pros:

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; $200,000 per year in Ascent loans, in aggregate
US citizens, Permanent residents, DACA status applicants do not require a co-signer
Residency deferment options: 48-month deferment period, during which residents who receive low incomes compared to their future earning potential available
Grace period of 36 months available after graduation

Cons:

High maximum interest rate
May need to have more than two years of credit history for a loan without a co-signer

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CITIZENS BANK

Pros:

Loan terms: 5, 10, or 15 years
Loan amounts available: $1,000 to $350,000 aggregate, including federal and private loans, for medical students
Signing up for automatic payments can reduce interest rate by 0.25%; if you have a qualifying Citizens Bank account, you earn an additional 0.25% off
Residency deferment options: borrowers can defer payments for up to eight years total, including residency
Available to international students with a U.S. citizen co-signer

Cons:

Grace period of 6 months only
No interest rate estimate with soft credit check

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COLLEGE AVE

Pros:

Loan terms: 5, 8, 10, 15, or 20 years
Loan amounts available: $1,000 to total cost of attendance, up to a maximum of $150,000 in College Ave student loans
Residency deferment options: borrowers can defer payments for up to eight years total, including residency
Autopay enrollment qualifies you for a 0.25% interest rate discount; with a qualifying Citizens Bank account, you earn an additional 0.25% discount
Available to international students with a U.S. citizen co-signer

Cons:

Grace period of 6 months only
No interest rate estimate with soft credit check

SALLI MAE

Pros:

Loan term: 20 years
Loan amounts available: $1,000 to up to total cost of attendance, no maximum for medical students
Residency deferment options: 48 months of residency deferment available, 36-month post-graduation grace period
Autopay enrollment qualifies you for a 0.25% interest rate discount

Cons:

Only one loan term available
Strongly encourages adding a creditworthy co-signer

Federal Student Loans are the best overall, as they give you access to income-driven payment plans such as Pay-As-You-Earn (PAYE) and Income-Based Repayment.

Citizens Bank’s variable and fixed interest rates are some of the lowest available, and their multiyear approval program qualifies you for multiple years of funding upfront, saving you multiple hard credit checks.

College Ave is the best for repayment terms as you have five term options to choose from, and Salli Mae and Ascent medical school loans are the best for flexibility in starting your payments, with a 36-month grace period and the option to defer payments during residency. Ascent borrowers can also get a cash back reward of 1% of the loan’s original principal balance upon graduation.

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Is There Financial Aid For Med School Applications?

For MD (allopathic) medical school applicants:

The AAMC Fee Assistance Program (FAP) assists those who, without financial assistance, would be unable to take the MCAT and apply through the AMCAS:

2022 Fee Assistance Program Updates and Essentials

Who Is Eligible to Participate in the Fee Assistance Program?

What Are the Benefits of the Fee Assistance Program?

What You Need to Apply

Fee Assistance Program FAQs

For DO (osteopathic) medical school applicants:

A limited number of fee waivers are available through the AACOMAS Fee Waiver Program and are worth $196 each + additional perks detailed below. Fee waivers are given out to qualified applicants until available funds run out for the cycle.

What AACOMAS Fee Waiver Program recipients can expect:

Funds to cover the initial application fee of $196. If an applicant receives a fee waiver and wishes to apply to more than one school, they are still responsible for the additional fee of $46 per program.
Access to AACOM’s Big Interview Platform free of charge. Once awarded a Fee Waiver, applicants will receive login access to Big Interview.

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20 Med Schools with The Best Financial Aid

Best Financial Aid at Private Medical Schools:

New York University (Grossman)

Students receiving any financial aid: 100%

Students receiving loans: 22%

Students receiving grants/scholarships: 100%

Students receiving work study: 6%

Kaiser Permanente

Students receiving any financial aid: 100%

Students receiving loans: 0%

Students receiving grants/scholarships: 100%

Students receiving work study: 0%

New York University--Long Island

Students receiving any financial aid: 100%

Students receiving loans: 66%

Students receiving grants/scholarships: 100%

Students receiving work study: 0%

Texas Christian University

Students receiving any financial aid: 100%

Students receiving loans: 78%

Students receiving grants/scholarships: 100%

Students receiving work study: 0%

Howard University

Students receiving any financial aid: 98%

Students receiving loans: 92%

Students receiving grants/scholarships: 82%

Students receiving work study: 0%

Midwestern University

Students receiving any financial aid: 96%

Students receiving loans: 94%

Students receiving grants/scholarships: 17%

Students receiving work study: 8%

Hackensack Meridian School of Medicine

Students receiving any financial aid: 96%

Students receiving loans: 73%

Students receiving grants/scholarships: 81%

Students receiving work study: 0%

Touro University California

Students receiving any financial aid: 94%

Students receiving loans: 89%

Students receiving grants/scholarships: 44%

Students receiving work study: 32%

University of Chicago (Pritzker)

Students receiving any financial aid: 92%

Students receiving loans: 61%

Students receiving grants/scholarships: 90%

Students receiving work study: 0%

Hofstra University/Northwell Health (Zucker)

Students receiving any financial aid: 91%

Students receiving loans: 72%

Students receiving grants/scholarships: 88%

Students receiving work study: 0%

Best Financial Aid at Public Medical Schools:

Oregon Health and Science University

Students receiving any financial aid: 100%

Students receiving loans: 76%

Students receiving grants/scholarships: 98%

Students receiving work study: 0%

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University of Central Florida

Students receiving any financial aid: 100%

Students receiving loans: 64%

Students receiving grants/scholarships: 100%

Students receiving work study: 0%

Virginia Tech Carilion School of Medicine

Students receiving any financial aid: 99%

Students receiving loans: 78%

Students receiving grants/scholarships: 99%

Students receiving work study: 0%

Eastern Virginia Medical School

Students receiving any financial aid: 97%

Students receiving loans: 96%

Students receiving grants/scholarships: 37%

Students receiving work study: 0%

Marshall University (Edwards)

Students receiving any financial aid: 94%

Students receiving loans: 75%

Students receiving grants/scholarships: 85%

Students receiving work study: 0%

University of Nevada--Reno

Students receiving any financial aid: 94%

Students receiving loans: 76%

Students receiving grants/scholarships: 90%

Students receiving work study: 0%

University of Kansas Medical Center

Students receiving any financial aid: 93%

Students receiving loans: 69%

Students receiving grants/scholarships: 83%

Students receiving work study: 0%

University of California--Los Angeles (Geffen)

Students receiving any financial aid: 93%

Students receiving loans: 46%

Students receiving grants/scholarships: 88%

Students receiving work study: 0%

Augusta University

Students receiving any financial aid: 93%

Students receiving loans: 64%

Students receiving grants/scholarships: 29%

Students receiving work study: 0%

University of Nebraska Medical Center

Students receiving any financial aid: 93%

Students receiving loans: 69%

Students receiving grants/scholarships: 68%

Students receiving work study: 0%

Good luck financing your medical journey! And we hope you’re taking a moment to congratulate yourself on that acceptance letter! Figuring out the finances is not easy, but we hope these tips will help you navigate the challenge of medical school financial aid!

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financial aid