Practical Ways Medical Students Can Pay for Medical School

It is no secret that medical school is quite expensive. Tuition, which can cost as much as a couple of years of an undergraduate degree, is only the beginning, however. In addition to paying for Tuition and Fees, students must consider other expenses, such as room and board, transportation, books and supplies, test-taking fees, medical and life insurance, as well as everyday living expenses.

This doesn’t mean that there is only one way to pay for your medical education.

When deciding how to pay for medical school, most students use a combination of their own savings, and school and outside awards such as scholarships, grants, and loans. Students should take into account their own financial situation, as well as the tuition, fees, and costs of attendance at their own and compared schools. Students should also consider the type of aid available, and how it will be repaid, as part of their overall financial plan.

In summary, early knowledge of the financial options available for medical school can ease the way for students in terms of financial issues and future surprises.

Start With the Full Cost of Attendance

Tuition and fees are typically the largest portion of the total cost of attendance, but do not account for the rest of the expenses of attending medical school.

Many schools detail their “estimated cost of attendance”, typically a list of items that comprise the student’s costs including Tuition & Fees, as well as, items like room and board, meals away from home, personal expenses, transportation, books and other school supplies, health insurance, etc.

This figure provides a more realistic starting point for a student to plan for the costs of medical school.

Of course, when considering the total cost of attending medical school, there are many costs that will not fit within your budget. These are travel costs for clinical rotations, relocation costs for spouses and families for residency programs, and many other expenses including costs for licensing exams, professional attire, and even applying for residency programs.

Budgeting for all yearly expenses will help the applicant determine how much funding they will need for medical school.

These tools can also help students to determine how much they need to borrow in order to cover the remaining costs of their education.

Apply for Scholarships as Early as Possible

Scholarships are some of the best financial aid, because typically they are given in the form of grants and do not have to be repaid.

The majority of medical scholarships are not based on students’ GPA in undergrad. Rather, they are awarded based on a variety of factors, including academic achievements, financial need, community service, leadership, and more.

Each scholarship can have different requirements, such as academic achievements, financial needs, community services, leadership roles, geographical locations, future careers, and personal backgrounds. Some scholarships can be offered by the medical schools, and others can be provided by hospitals, medical schools’ foundations, professional organizations, and local and national organizations and companies.

Looking for Scholarships throughout the year can increase your chances of getting picked for a scholarship. Instead of having a one-time task of filling out scholarship applications throughout the year could result in finding more scholarships that can help with the costs of medical school.

Even smaller awards matter.

While a $1,000 scholarship won’t cover too much of your tuition, several smaller scholarships can cover the cost of books, examination fees, and living expenses, among others, thus not having to resort to borrowing for these costs.

Look for Grants and Service-Based Programs

However, there are many grants and financial aid programs for medical students that require service after completion of medical school.

Finally, many grants and scholarships for medical students offer financial assistance in exchange for future service. These programs can be especially relevant for primary care physicians, rural medicine specialists, public health advocates, and others who intend to work in underserved communities.

However, certain programs are designed to allow students who are eligible for financial aid to receive financial assistance in the form of scholarships or in the form of having the student’s future medical care debt repaid while the student is engaged in service. These programs, provided by government and non-profit organizations, often have specific focus areas where there is a health care need that cannot be met by the local medical community. In these instances, a service commitment can be made up for by the student, in the form of providing care in underserved communities or of a certain specialty.

Students should review the terms carefully.

Of course, there are situations where a service commitment is more than worthwhile for a medical student (e.g. because his or her career goals will be fulfilled by the terms and conditions of the grant). However, these situations are probably the exception rather than the rule. Most students will be uncertain as to their chosen specialty, and where they intend to practice.

Borrow Carefully Instead of Automatically Taking the Maximum

Student loans are a common part of medical education.

However, just because you are eligible to borrow money does not mean you have to take out the full amount of money that you are eligible to borrow.

By borrowing only what is needed for each semester of medical school, students can ensure that they are not spending more than necessary and that the interest on their loans is kept to a minimum over the life of the loan.

By borrowing a few thousand dollars less every year, you can reduce the interest that it will accumulate by over time.

Because of the terms and conditions offered, Federal student loans are often considered first before taking out a private student loan. Although students can turn to private student loans when necessary, they must compare interest rates, repayment terms and conditions, as well as fees and borrower protections offered by various lenders.

Know what you are getting into.

Think About Repayment Before Graduation

Wait until after graduation to start thinking about repayment.

There are ways for medical students to get an idea of their projected loan balance while they are in school. By having an idea of how much they will owe after graduation, students can make more deliberate decisions regarding repayment of their loans.

A student who expects to go into a low-paying specialty will have a different repayment strategy than someone who expects to go into a high-paying specialty.

Residency also needs to be considered.

During the three to seven years you spend in residency, you will likely earn much less than you will after you have completed your residency and are practicing medicine. Thus, during this time, it is unlikely that you will be able to make more than token payments on your student loans.

Post-graduation, you can look into ways to repay your student loans, such as exploring an income-driven repayment plan, reviewing available loan forgiveness programs, or attempting to refinance medical student loans. Again, none of these repayment strategies will be right for every individual and will be dependent on a number of variables including the interest rate on your loan, the type of loan you have, and your current income.

None of these approaches will work for everyone. Each borrower must figure out what is in their best interest, based on their current financial situation and the terms and protections of their current loans.

Keep Living Costs Under Control Where Possible

Medical students generally have little power to control for tuition, but they can try to manage their living expenses while in school.

Another thing that you can control is your living situation. While it is nice to have a house to yourself in med school, you can save a lot of money by having a roommate. Sharing an apartment with another student in med school can save you a lot of money every month.

Transportation is another.

In some places, students may be able to take public transportation to school. However, most are left to maintain a vehicle while attending school for clinical rotations. Ultimately, it depends on where the school is for the individual.

In addition, the costs of food can become quite large during very busy semesters of school.

By preparing simple meals ahead of time and bringing them with you to class, you can save a lot of money on food. That money that you would have spent on eating out, ordering delivery, or eating at the hospital can go towards your tuition and other expenses.

They can save money without having to be extremely frugal.

Build a Funding Strategy Rather Than Looking for One Solution

There is rarely a single answer to the question of how to pay for medical school.

A realistic strategy usually combines several approaches.

Scholarships and grants will likely not cover all of the expenses for medical school, but can help to reduce the amount that has to be borrowed. By creating a budget and sticking to it, a student can ensure that they are not spending more than they can afford to for living expenses. The amount of interest a student has to pay on a loan can be reduced by how they borrow money for medical school, as well as by planning for early repayment of loans after graduation.

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Adam Regan: Deputy Editor

Features and account management. 7 years media experience. Previously covered features for online and print editions.

Email Adam@MarkMeets.com