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5 Options for Funding Medical School Without Going Bankrupt

You may have always wanted to be a doctor, but you may not have anticipated the astronomical expenditures of medical school. The average out-of-state tuition at a private school in 2019-2020 was $56,946 per year, Association of American Medical Colleges (AAMC) claims that. To pay for medical school without going into significant debt, you must first figure out how to pay for it without going into massive debt Consolidation Now.

Fortunately, there are methods to pay for medical school without going bankrupt. 

What is the best way to pay for medical school?

This is our guide to paying for medical school without going bankrupt.

1. Look for scholarship options in your area.

2. Fill out a federal financial assistance application.

3. Take into account private student debts.

4. Work as a TA or RA.

5. Participate in a volunteer program.

1. Look for scholarship options in your area.

When it comes to scholarships, the focus is often on undergraduate studies. However, there are several scholarships available for medical students. Even better, scholarships are available at every stage of the medical school process, from pre-medical undergraduate studies through residency placement.

Some medical schools, such as the Perelman School of Medicine at the University of Pennsylvania, will provide full merit scholarships. Meanwhile, the American Medical Association Foundation’s Physicians of Tomorrow Award gives $10,000 to students in their last year of medical school. Consequently, scholarship options should be investigated throughout your medical school career.

Also, don’t forget to seek scholarships unrelated to your medical studies. You can be eligible for a scholarship based on a hobby, family history, or volunteer activity. Even smaller ones costing a few hundred dollars may add significant savings if purchased in bulk.

You may hunt for scholarships in a few different locations. Ask your school about potential scholarships, seek out local groups, check at hospital opportunities, and utilize a website like CollegeBoard’s scholarship search to find choices according to your interests and experience.

2. Fill out a federal financial assistance application.

Filling out the Free Application for Federal Student Aid (FAFSA) may not spring to mind while considering how to pay for medical school. Sure, it’s something you completed in college, but it should also be the first step toward obtaining financial help for your post-graduate degree.

Medical schools use the FAFSA to assess how much financial help you are qualified for depending on your financial requirements. Send an application to each school you’ve applied to, even if you haven’t been accepted yet. This will guarantee that you get the maximum amount of financial assistance.

If you fill out the FAFSA, you could be eligible for a government loan. Medical students may apply for various federal loans, including Direct Unsubsidized, Direct PLUS, and HRSA Primary Care. These loans often have lower interest rates and more flexible repayment options, making them simpler to repay after graduation.

The procedure is the same as when you applied for financial aid for college — only make sure you check to see if the medical schools have any deadlines. You may need a parent to help you fill out the form, so make sure you have all your papers in order before the deadline.

3. Take into account private student debts.

Even if you obtain scholarships and financial help from your medical school or the government, you may not be able to afford your study expenses. Private student loans come into play in this situation.

Private student loans for medical school are granted by private lenders such as Citizens Bank or College Ave., unlike federal loans, which the government controls. As a result, the loan’s eligibility conditions, interest rates, and payback periods may differ depending on the lending institution.

While private loans have fewer rules, they tend to have more significant borrowing limits, which may be able to pay all of your needs that government assistance cannot. They may also have lower interest rates than government loans, reducing total payments.

To qualify for private student loans, you must pass a credit check, and you may need a cosigner if you can’t fulfill a lender’s underwriting standards on your own.

Before taking out a loan, make sure you understand all of the conditions so you don’t end yourself in a situation where you can’t pay it back. If you’re having financial difficulties, the absence of regulation limits your alternatives.

4. Work as a TA or RA.

Attempting to work part-time while through the rigors of medical school may seem unattainable. However, there is a method for you to contribute to your tuition by working on campus.

In return for tuition credits, several medical schools offer research and teaching assistantships, where you may help professors or conduct small group discussions for first-year students.

For example, the Stanford School of Medicine offers a tuition reduction of almost $13,000 in exchange for 20 hours per week as a teaching assistant (TA) or research assistant (RA) and a quarterly income of over $11,000.

This is often not a choice for first-year medical students since it needs some prior expertise. However, start talking to your school as soon as possible so you’re ready to fulfill any application deadlines and finish any requirements that may be required.

5. Participate in a volunteer program.

Enrolling in a government or military service program as a way to pay for medical school is a fantastic option. In essence, you will have part or all of your medical school tuition reimbursed for working for one of the institutes for a specific number of years.

Consider the following programs:

Scholarship for the National Health Service Corps (NHSC): The Department of Health and Human Services will pay for up to four years of medical school tuition and living expenses if you agree to work in an authorized “underserved community” for at least two years.

Scholarship Program for Health Professions (HPSP): If you serve in the military, you may be able to have all of your tuition and fees paid for and a living stipend, and a sign-on bonus. You must commit to one year of active duty for each year of your scholarship, with a three-year minimum.

PSLF (Public Service Loan Forgiveness): While this program will not cover all of your expenditures, it will assist you in repaying any debts you took out for medical school. If you work for a qualified organization such as a charity or the government after making 120 loan payments, you may be able to have your debts forgiven under PSLF. Because it’s not a guaranteed choice, do your homework and utilize a Public Service Loan Forgiveness calculator to see whether it’s worth it.

LRAP (Debt Repayment Assistance Program): Many states provide medical professionals student loan forgiveness for two to three years of service in a shortage or high-need region. Check out our LRAP database to see whether your state may assist you in repaying your medical school debts.

These alternatives are excellent for determining how to fund medical school. Medical school fees might be intimidating at first, but researching various options can help reduce some of the stress and put you on the path to helping others.