Starting Off on the Right Foot
While you are attending medical school, one of the most important resources will be the financial aid staff at your school. Financial aid may at times seem complicated, even if you had student loans as an undergraduate student; however, the financial aid staff is available to assist you when you have questions or concerns.
You may borrow more in medical school than what you borrowed as an undergraduate student, or even as a graduate student; however, don’t let loans intimidate you. Be mindful of how much you borrow to cover your education expenses so that repayment will not be a surprise.
You don't have to borrow the entire amount you are offered. Instead, consider accepting and borrowing only what you need. If you borrow more than necessary, check with your financial aid staff to see if you can return a portion of your loan. Remember, once a loan is disbursed, you pay an origination fee and interest starts to accrue on the loan, so you will pay back more than just the amount you borrowed. The less you borrow during medical school, the less you will have to repay when you graduate.
Money Management Tools and Resources
The FIRST program has valuable and practical tools to help with financial aid and money management. Become familiar with our monthly webinars, and the Financial Wellness program.
Use the MedLoans™ Organizer and Calculator (MLOC) tool. It's designed specifically for you. You can keep track of your loans and view loan repayment options.
You may also want to review our FIRST Fact Sheets. These are informational articles that explain topics that are sometimes considered complicated or confusing. Fact sheets that may be of interest to transitioning medical students include:
- The Financial Aid Application Process
- Budgeting Basics and Tips
- Budget Worksheet for Students
- Federal Direct Loans
- Loan Forgiveness, Scholarship and Service Programs
Talk to Your Advisors and Friends
You are not alone. Many of your classmates are in the same financial situation as you. Support each other by using, sharing, and discussing resources and tools available from FIRST. These materials were designed to help you understand financial aid, money management, and loan repayment.
Debt Management Tips
One of the best things you can do prior to beginning medical school is pay down any debt you have on credit cards and/or undergraduate loans. If you can pay this debt off before starting medical school, that’s even better! The less debt you have when you start medical school, the less you will have to repay when you enter residency or begin practice.
Keep in mind, if you can't pay off all your debt but want to apply extra payments or make unscheduled payments, pay down the debt with the highest interest rate first.