Loans & Work–Study Options for MD Students
Students seeking additional funds to cover medical school costs not covered by our scholarships have other options.
U.S. citizens and permanent residents can apply for on-campus employment through the federal work–study program. Students participating in this program must be reviewed for eligibility by completing the Free Application for Federal Student Aid (FAFSA). The federal work–study program takes place the summer after your first full year.
After completing the FAFSA, you may be eligible for federal loans through the direct lending program. Low-interest federal Direct Loans are available to all U.S. citizens and permanent residents regardless of financial need. Federal loans are long-term, guaranteed loans directly from the U.S. Department of Education. These are used to cover educational expenses, regardless of financial need.
Direct Unsubsidized Loan Program
Students enrolled at least half-time can borrow up to $40,500 annually with Direct Unsubsidized Loans but cannot borrow more than $224,000 in total. The interest rate for the 2022–23 academic year is 6.54 percent with a standard 10-year repayment term. The Department of Education charges a 1.057 percent origination fee at the time of disbursement.
Direct Graduate PLUS Loan Program
Students enrolled at least half-time can borrow up to the cost of attendance, excluding any other financial aid received, with Direct PLUS Loans. The interest rate for the 2022–23 academic year is 7.54 percent with a standard 10-year repayment term. The Department of Education charges a 4.228 percent origination fee at disbursement.
Direct Graduate PLUS Loans are “credit ready,” which means you undergo a credit analysis to be approved for this loan. However, credit checks are less stringent than those you undergo for private loans.
Federal Loan Repayment and Deferral
Repayment on Direct Loans begins six months after your enrollment as a full-time student has ended. Interest on federal loans accrues while you’re in school and during grace and deferment periods. You may postpone interest payments until the end of a grace period.
There is no way to defer federal loans during your residency training. However, you may opt into an income-adjusted payment plan to lower your initial loan payments or request forbearance. With a forbearance, you do not make payments for the requested time, but interest accrues and is added to the principal balance.