College Student Loan News and Info

Medical School Loans in 2008

Medical school loans are available through both federal and private student aid programs. According to the Association of American Medical Colleges (AAMC) the cost of private medical schools has increased more than 160 percent. The cost of public medical schools has far surpassed that at an increase of 312 percent. On average, medical students exit college with a degree and approximately $100,000 in medical school loans. Unfortunately, the AAMC also reports that physician salary growth has actually slowed in recent years, making it harder for graduates to repay their medical school loans.

Financial aid experts recommend borrowers consolidate their medical school loans and get locked in at a lower interest rate with a refinanced loan that will produce a lower monthly payment.

Despite some setbacks in the medical school loan arena, students are still seeking medical degrees and taking out loans to do it. The AAMC will be “lender neutral” begining the 2008-2009 school year. For now, they offer an attractive, MedLoans program on their website. Students can also apply for federal assistance through the U.S. Department of Education. Here there are unsubsidized, subsidized, and PLUS Loans available to students. The federal program offers the most competitive loan packages in regards to repayment plans and interest rates. Visit the DOE at www.ed.gov

Unfortunately, many college students require more than what the government has to offer.

Private medical school loans have become very popular in recent years. Lenders favor lending money to medical school students because of their high income potential. Historically, students generally stick out medical school and don’t leave before getting their MD. So medical school students are ideal candidates – in the eye of the lender - for a loan.

To apply for private medical school loans, the borrower should first review multiple lenders. When educated and really ready to apply, the borrower must simply select their desired lender and fill out the appropriate paperwork. Applications can be submitted online and credit decisions can be returned in minutes. Private loans do require a credit check and feature various interest rates, so please read all the terms and conditions when applying. Do not fill out multiple loan applications at once as it will reflect negatively on your credit score as “multiple inquiries.”

Best of luck this semester from everyone at Student Loans.Net