Four years of medical school. Three to seven years of residency. Somewhere between $240,000 and $380,000 in total costs. That is the reality for most MD and DO students in 2026. The median physician salary eventually climbs above $240,000, but the years between starting school and earning attending-level income are long, and the debt is real. With Grad PLUS loans eliminated for new borrowers starting July 1, 2026, most medical students will need private loans to cover the gap between federal aid and what their program charges.
The good news is that physicians earn strong salaries after training. The median physician salary is about $240,000 per year, though that number varies widely by specialty. Family medicine doctors earn around $210,000, while surgeons can earn $500,000 or more. The debt is large, but the earning potential to pay it back is real.
Here is the problem: a major federal loan change is about to make things harder. The One Big Beautiful Bill Act (OBBBA) eliminates the Grad PLUS loan program starting July 1, 2026. Under the new rules, professional students like medical students face annual borrowing limits of $50,000 and an aggregate federal cap of $200,000. For many medical schools, that leaves a funding gap of $40,000 to $180,000 or more over four years. The federal graduate loan interest rate currently sits at 7.94%.
Private student loans are now a necessary part of the funding plan for most medical students. This guide ranks the five best private student loans for medical school in 2026 and explains how to choose the right one.
Federal Loans First
Before you look at private lenders, max out your federal student loans. Even with the new lower limits, federal loans still offer protections that private loans do not.
Federal student loans offer:
- Income-driven repayment (IDR) plans that cap payments at a percentage of your income
- Public Service Loan Forgiveness (PSLF) for borrowers who work at qualifying nonprofit or government employers
- Deferment options during residency and fellowship
- No credit check for Direct Unsubsidized Loans
- Fixed interest rates set by Congress each year
Under the new OBBBA rules, you can borrow up to $50,000 per year in federal loans, with a $200,000 lifetime aggregate limit for professional students. Fill that bucket first. Then use private loans to cover the remaining gap.
What Medical Students Should Look For in a Private Loan
Medical school borrowers have unique needs compared to other graduate students. Here is what matters most when comparing private lenders.
Residency Deferment
This is the single most important feature for medical students. After four years of medical school, you enter residency for three to seven years. During residency, you earn roughly $60,000 to $70,000 per year. You cannot afford full loan payments on that salary. Look for lenders that offer extended grace periods or in-school deferment that covers both medical school and residency.
Interest Rates
Private lender rates for graduate students currently range from about 2.89% to 16.49% depending on the lender, your credit score, and whether you choose fixed or variable rates. The best-qualified borrowers with strong cosigners can get rates well below the 7.94% federal rate. Compare APRs, not just advertised rates.
Cosigner Release
Many medical students need a cosigner to qualify for the best rates. Look for lenders that offer cosigner release after 12 to 36 months of on-time payments. This protects your cosigner from long-term liability.
Loan Limits
Medical school is expensive. You need a lender that covers 100% of the cost of attendance (COA) or close to it. Some lenders cap borrowing below the full COA, which can leave you short.
Fees
Avoid lenders that charge origination fees or prepayment penalties. The best private lenders charge zero fees.
Best Private Student Loans for Medical School in 2026
Rankings
Compare private student loan options
Compare College Ave, Earnest, and Sallie Mae — with Sallie's rate matched to this program where available.
- Rank #1Editor's Pick
Graduate
College Ave
Best for: Students who want flexible repayment options and no origination fees
- 0.25% rate reduction with auto-pay
- Four in-school repayment options
- No application, origination, or prepayment fees
- Borrow from $1,000 up to 100% of cost of attendance
Apply NowRates
From 2.39% APR
2.39% - 15.99% fixed APR, 3.89% - 15.99% variable APR
Disclosures+
College Ave's student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or BTG Pactual Bank, N.A., member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply. (1) All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation. (2) As certified by your school and less any other financial aid you might receive. Minimum $1,000. (3) This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (APR): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary. Information advertised valid as of 7/20/2026. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
- Rank #2
Graduate
Sallie Mae
Best for: Undergraduate and graduate students, and parents, comparing competitive fixed- and variable-rate private student loans
- Competitive variable and fixed rates
- Multiple repayment options
- Cosigner release available
- No origination fees
Apply NowRates
From 2.29% APR
2.29% - 14.97% fixed APR, 3.75% - 13.34% variable APR
Disclosures+
Medical School Loan: Example of a typical transaction for a $10,000 Medical School Loan with the most common fixed rate, Fixed Repayment Option, two disbursements, a 4-year in-school period, and a 48-month grace period. It works out to 8.98% fixed APR, 93 payments of $25.00, 239 payments of $147.62 and one payment of $6.18, for a total loan cost of $37,612.36. Loans that are subject to a $50 minimum principal and interest payment amount may receive a loan term that is less than 20 years. A variable APR may increase over the life of the loan. A fixed APR will not. Information advertised valid as of 07/02/2026. Rates: Advertised APRs for undergraduate students assume a $10,000 loan with a 4-year in-school period, a 6-month grace, and the longest loan term offered. Interest rates for variable rate loans may increase or decrease over the life of the loan based on changes to the 30-day Average Secured Overnight Financing Rate (SOFR) rounded up to the nearest one-eighth of one percent. Advertised variable rates are the starting range of rates and may vary outside of that range over the life of the loan. Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan's Current Principal at the end of the grace/separation period. To receive a 0.25 percentage point interest rate discount, the borrower or cosigner must enroll in auto debit through Sallie Mae. The discount applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment. Cosigner Release: Only the borrower may apply for cosigner release. To do so, they must first meet the age of majority in their state and provide proof of graduation (or completion of certification program), income, and U.S. citizenship or permanent residency (if their status has changed since they applied). In the last 12 months, the borrower can't have been past due on any loans serviced by Sallie Mae for 30 or more days or enrolled in any hardship forbearances or modified repayment programs. In addition, the borrower must have paid ahead or made 12 on-time principal and interest payments on each loan requested for release. The loan can't be past due when the cosigner release application is processed. The borrower must also demonstrate the ability to assume full responsibility of the loan(s) individually and pass a credit review when the cosigner release application is processed that demonstrates a satisfactory credit history including but not limited to no: bankruptcy, foreclosure, student loan(s) in default or 90-day delinquencies in the last 24 months. Requirements are subject to change.
- Rank #3
Medical school loans
Earnest
Best for: Medical school loans borrowers comparing zero-fee private loan options with flexible repayment.
- 0.25% Auto Pay³ discount plus 0.25% Loyalty⁴ discount for eligible returning borrowers
- No origination fees, late fees, or prepayment penalties¹
- Borrow $1,000⁵ to $400,000 with 5, 7, 10, 12, or 15-year terms⁶
- Four repayment options², a 9-month grace period⁷, and cosigner release for eligible borrowers⁸
Check EligibilityRates
Program-specific rates + benefits
2.29% - 16.24% fixed APR, 4.74% - 16.60% variable APR
Disclosures+
Earnest Private Student Loans are subject to credit approval. ¹Earnest does not charge fees for origination, late payments, returned check, or prepayments. Florida Stamp Tax: For Florida residents, Florida documentary stamp tax is required by law, calculated as $0.35 for each $100 (or portion thereof) of the principal loan amount, the amount of which is provided in the Final Disclosure. Lender will add the stamp tax to the principal loan amount. The full amount will be paid directly to the Florida Department of Revenue. Certificate of Registration No. 78-8016373916-1. ²Repayment terms and repayment options available vary based on loan type. ³You can take advantage of the Auto Pay interest rate reduction by setting up and maintaining active and automatic ACH withdrawal of your loan payment from a checking or savings account. The interest rate reduction for Auto Pay will be available only while your loan is enrolled in Auto Pay. Interest rate incentives for utilizing Auto Pay may not be combined with certain private student loan repayment programs that also offer an interest rate reduction. It is important to note that the 0.25% Auto Pay discount is not available when loan payments are deferred during the interim period as a result of selecting the deferred repayment option. ⁴To be eligible for the Loyalty Discount, applicants must have previously obtained an Earnest Private Student Loan and apply using the same email address associated with that loan. Only one Loyalty Discount may be applied per eligible Earnest Private Student Loan. Not all applicants may qualify. This offer cannot be combined with Earnest’s Rate Match program. Earnest may modify or discontinue this offer at any time and without notice, however, once a Loyalty Discount is earned, it will not be taken away. ⁵Residents of Hawaii must request a loan of at least $1,501. ⁶Available interest rates are subject to change. Interest rates as of 03/19/2026. Earnest’s Loan Cost Examples: 1.) These examples provide estimates based on principal and interest payments beginning immediately upon loan disbursement. Variable annual percentage rate ("APR"): A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $27,511.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed APR: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $27,054.10. 2.) These examples provide estimates based on interest-only payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $152.84) and a 16.85% interest rate without Auto Pay (16.85% APR) would result in a total estimated payment amount of $35,515.14. For a variable loan, after your starting rate is set, your rate will then vary with the market. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $140.42 for 57 months. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $150.30) and a 16.49% interest rate without Auto Pay (16.49% APR) would result in a total estimated payment amount of $34,886.94. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $137.42 for 57 months. 3.) These examples provide estimates based on fixed $25 payments while in school. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $253.39) and a 16.85% interest rate without Auto Pay (14.92% APR) would result in a total estimated payment amount of $47,035.20. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $246.61) and a 16.49% interest rate without Auto Pay (14.65% APR) would result in a total estimated payment amount of $45,814.80. Your actual repayment terms may vary. Other repayment options are available. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $25.00. 4.) These examples provide estimates based on deferred payments. Variable interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $275.17) and a 16.85% interest rate without Auto Pay (14.67% APR) would result in a total estimated payment amount of $49,530.60. For a variable loan, after your starting rate is set, your rate will then vary with the market. Fixed interest rate: A $10,000 loan with a 15-year term (180 monthly payments of $268.03) and a 16.49% interest rate without Auto Pay (14.39% APR) would result in a total estimated payment amount of $48,245.40. Your actual repayment terms may vary. Other repayment options are available. It is important to note that the 0.25% Auto Pay discount is not available when the deferred repayment option has been selected and the loan is in the interim period. The calculation assumes that the “in-school” period is 4 years (48 months) and includes our 9 month grace period, during which the monthly payment will be $0. ⁷Nine-month grace period is not available for borrowers who choose our Principal and Interest Repayment plan while in school. ⁸To qualify for automatic cosigner release, the outstanding principal balance of your loan must be paid down to 50% or less of the original principal balance. The primary borrower must have made 36 months of required payments after the end of the Interim Period. The primary borrower must meet our eligibility and minimum credit requirements. Additional terms and conditions may apply. To request cosigner release, the primary borrower must have made 12 consecutive, monthly on-time principal and interest payments (or an amount equal thereto) immediately preceding the cosigner release application. The primary borrower must satisfy certain eligibility and credit criteria at the time of application. Additional terms and conditions may apply. ⁹Includes 0.50% combined Auto Pay and Loyalty discounts. Actual rate and available repayment terms will vary based on your financial profile. Fixed annual percentage rates (APR) range from 2.79% to 16.74% (2.29% - 16.24% with Auto Pay and Loyalty discounts). Variable annual percentage rates (APR) range from 5.24% to 17.1% (4.74% - 16.6% with Auto Pay and Loyalty discounts). Earnest variable interest rate student loans are based on a publicly available index, the 30-day Average Secured Overnight Financing Rate (SOFR) published by the Federal Reserve Bank of New York. The variable rate is based on the rate published on the 25th day, or the next business day, of the preceding calendar month, rounded to the nearest hundredth of a percent plus a margin and will change on the 1st of each month. The rate will not increase more than once a month, but there is no limit on the amount that the rate could increase at one time. Our lowest rates are only available for our most credit qualified existing cosigned loan borrowers who receive the 0.25% Loyalty discount and requires selection of our shortest term offered, full principal and interest payment while in school, and enrollment in our 0.25% Auto Pay discount. Enrolling in Auto Pay is not required as a condition for approval. Interest rates are subject to change. Earnest Private Student Loans are made by FinWise Bank, Member FDIC. FinWise Bank, 756 East Winchester, Suite 100, Murray, UT 84107. Earnest student loans are serviced by Earnest Operations LLC, 300 Frank H. Ogawa Plaza, Suite 340, Oakland, CA 94612. NMLS #1204917, with support from Higher Education Loan Authority of the State of Missouri (MOHELA) (NMLS# 1442770). FinWise Bank and Earnest LLC and its subsidiaries, including Earnest Operations LLC, are not sponsored by agencies of the United States of America. © 2026 Earnest LLC. All rights reserved.
1. Sallie Mae Medical School Loan -- Best Overall
Sallie Mae offers a dedicated Medical School Loan product that stands out for one reason above all others: an industry-first 96-month extended grace period. That breaks down to 48 months of in-school deferment plus 48 months of residency deferment. No other major lender matches this.
Key features:
- Fixed APR: 2.89% to 14.99% (graduate)
- 96-month extended grace period (48 months school + 48 months residency)
- 12-month cosigner release
- Dedicated medical school loan product
- Multiple repayment options during school
Why it is the best overall: The 96-month grace period is the gold standard for medical students. It means you will not owe full payments until you finish residency and start earning an attending physician salary. That single feature can prevent years of financial stress during training. Read our full Sallie Mae student loan review for more details.
2. College Ave Medical School Loan -- Best Alternative Grace Period
College Ave is a strong runner-up with a 36-month grace period specifically designed for medical students. While it does not match Sallie Mae's 96-month window, 36 months still covers a significant portion of residency.
Key features:
- Fixed APR: 2.39% to 15.99%
- 36-month grace period for medical students
- Covers 100% of cost of attendance
- Multiple in-school payment options
- Simple online application
Why we picked it: College Ave covers the full cost of attendance and offers a meaningful grace period. If you want a balance between competitive rates and residency-friendly repayment, College Ave delivers. Read our full College Ave student loan review for more details.
3. SoFi Medical/Veterinary Loan -- Best Member Benefits
SoFi takes a different approach by wrapping its medical loan in a full suite of member benefits. Beyond the loan itself, you get career coaching, unemployment protection, and access to member events.
Key features:
- Fixed APR: 3.23% to 15.99%
- Zero fees (no origination, no late, no prepayment)
- Career coaching and unemployment protection
- Dedicated Medical/Veterinary Loan product
- Member benefits including financial planning tools
Why we picked it: SoFi's zero-fee structure and member benefits add real value beyond the loan itself. The career coaching can be especially helpful during the transition from residency to practice. If you value a lender that supports your whole financial picture, SoFi is worth a close look. Read our full SoFi student loan review for more details.
4. Earnest -- Best Flexibility
Earnest gives borrowers more control over their loan terms than any other lender on this list. Its skip-a-payment feature and precision pricing let you customize your loan to fit your budget.
Key features:
- Fixed APR: 2.89% to 16.49%
- Skip-a-payment option (up to one payment per year)
- 9-month grace period after graduation
- Zero fees
- Choose your monthly payment amount
Why we picked it: Earnest is built for borrowers who want control. The skip-a-payment feature is a lifesaver during expensive months (board exams, relocation for residency). The 9-month grace period is shorter than Sallie Mae or College Ave, so Earnest works best if you have a plan to start paying relatively soon after school. Read our full Earnest student loan review for more details.
5. Ascent -- Best Without a Cosigner
Ascent is the standout choice for medical students who do not have a cosigner. Its Outcomes-Based Loan uses your school, major, and expected earnings to determine approval instead of relying solely on credit history.
Key features:
- Outcomes-Based Loan available without a cosigner
- Zero fees
- 12-month cosigner release (on cosigned loans)
- Multiple repayment options
- 1% cash back graduation reward
Why we picked it: Not every medical student has a parent or relative who can cosign. Ascent's Outcomes-Based Loan makes it possible to borrow without one. Since medical school graduates have strong earning potential, you are a good candidate for this type of approval model. Read our full Ascent student loan review for more details.
How to Choose the Right Loan
Picking the right private student loan comes down to your specific situation. Ask yourself these questions:
- Do you have a cosigner? If yes, you will likely qualify for the lowest rates from any lender. Compare Sallie Mae, College Ave, and Earnest side by side. If no, start with Ascent's Outcomes-Based Loan.
- How long is your residency? If you are entering a longer residency (5 to 7 years), Sallie Mae's 96-month grace period is critical. For shorter residencies (3 to 4 years), College Ave's 36-month grace may be enough.
- Do you want flexibility or structure? Earnest's skip-a-payment and custom terms suit borrowers who want control. Sallie Mae and College Ave offer more structured products.
- Do you value extra perks? SoFi's career coaching and unemployment protection add value that goes beyond the loan.
No matter which lender you choose, follow these steps:
- Max out federal loans first ($50,000 per year under the new rules)
- Calculate your remaining gap for each year of medical school
- Get rate quotes from at least three lenders (this uses a soft credit pull at most lenders)
- Compare APRs, grace periods, and fees side by side
- Choose the loan with the best combination of rate and residency deferment
Medical-Specific Repayment and Forgiveness Programs
Medical school debt is large, but the medical profession offers more repayment assistance programs than almost any other field. Here are the major options.
Public Service Loan Forgiveness (PSLF)
PSLF forgives the remaining balance on your federal Direct Loans after 120 qualifying monthly payments (10 years) while working full-time for a qualifying employer. Many teaching hospitals, academic medical centers, and public health systems qualify. This only applies to federal loans, not private loans.
National Health Service Corps (NHSC)
The NHSC Loan Repayment Program offers up to $50,000 in loan repayment in exchange for two years of service in a Health Professional Shortage Area (HPSA). You can extend your commitment for additional awards. This program covers both federal and private loans.
Military Scholarship Programs
The Health Professions Scholarship Program (HPSP) through the Army, Navy, and Air Force covers full tuition, fees, and a monthly living stipend in exchange for active duty service after residency. This can eliminate medical school debt entirely.
State Loan Repayment Programs
Many states offer their own loan repayment programs for physicians who practice in underserved areas. Awards typically range from $25,000 to $200,000 depending on the state and the length of your service commitment. Check your state's health department website for current programs.
Indian Health Service (IHS) Loan Repayment
The IHS Loan Repayment Program offers up to $40,000 per year in exchange for a two-year service commitment at an IHS health facility. You can renew your commitment for additional awards.
Frequently Asked Questions
Can medical students still get federal student loans after July 2026?
Yes. The OBBBA does not eliminate federal student loans for medical students. It eliminates the Grad PLUS loan program and sets new annual limits of $50,000 per year with a $200,000 aggregate cap for professional students. You can still borrow federal Direct Unsubsidized Loans up to those limits.
How much of a funding gap will medical students face?
It depends on your school's cost of attendance. If your school costs $70,000 per year and you can borrow $50,000 in federal loans, your annual gap is $20,000 ($80,000 over four years). At a $95,000-per-year school, your annual gap could be $45,000 ($180,000 over four years). Private loans, scholarships, and savings will need to fill the difference.
Should I get a fixed or variable rate?
For medical school loans, fixed rates are generally the safer choice. You are borrowing for four years of school plus potentially three to seven years of residency before you start earning a full salary. That is a long time for variable rates to move against you. Lock in a fixed rate for predictability.
Can I refinance my medical school loans during residency?
You can, but it is usually not a good idea during residency. Refinancing federal loans into a private loan means losing access to IDR plans and PSLF. Wait until you finish residency, know your employer type, and have decided whether to pursue forgiveness before refinancing.
How much will my monthly payment be after residency?
On a standard 10-year repayment plan, $200,000 in loans at 6% interest would cost about $2,220 per month. On a 20-year plan, that drops to about $1,430 per month. Income-driven repayment plans on federal loans can reduce payments further based on your income.
Do private medical school loans qualify for PSLF?
No. PSLF only applies to federal Direct Loans. Private student loans do not qualify. If you plan to pursue PSLF, keep your federal loans separate and use private loans only for the gap that federal loans cannot cover.
Is medical school debt worth it?
For most students, yes. The median physician salary of $240,000 or more is high enough to pay off even large loan balances within 10 to 15 years. Specialists can earn significantly more. The key is to borrow as little as possible, choose the right repayment strategy, and avoid lifestyle inflation during your early attending years.
When should I apply for private medical school loans?
Apply after you receive your financial aid award letter and have accepted your federal loan offers. This tells you exactly how much gap funding you need. Most lenders recommend applying four to six weeks before your tuition payment is due.
Bottom Line
Medical school is expensive, and the elimination of Grad PLUS loans makes private student loans a bigger part of the picture starting in July 2026. The five lenders in this guide offer the best combination of rates, residency deferment, and borrower-friendly features for medical students.
Start with federal loans. Fill the gap with private loans. And take advantage of the medical profession's unique repayment and forgiveness programs to pay down your debt faster.
Need help comparing lenders and finding the right loan for your medical school? CollegeLens.ai can help you build a personalized funding plan.
The CollegeLens Team
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