How to Get a Health Professions Student Loan for 2025

Student Finance & Loan Expert

A career in healthcare can be highly rewarding in various aspects. However, financing your healthcare education can be challenging as it can be very expensive. Medical school alone entails a total average cost of $235,827, and nursing school can cost an average of 12,000 to $50,000 per year.

The good news is that there are several student loan options available to help you shoulder your tuition and other related costs for your healthcare program. In this guide, my team and I will walk you through the different types of health professions student loans, the loan application process, eligibility requirements, interest rates, and repayment plans.

Key Things You Should Know About Health Professions Student Loan for 2025

A health professions student loan is a government loan that is available to healthcare students enrolled in participating schools and who can demonstrate financial need.
There are four kinds of health profession loans: Health Professions Student Loans, Loans for Disadvantaged Students, Primary Care Loans, and Nursing School Loans.
Health professions student loans are special because they have low interest rates, generous interest subsidies, and long grace periods.

What are health professions student loans?
What are the types of health professions student loans for 2025?
Who is eligible for a health professions student loan?
What makes health professions student loans different?
How do you get a health professions student loan?
How long does it take to get your health professions student loan approved?
What are the advantages of getting a health professions student loan?
Can I consolidate or refinance my health professions student loan?
Can pursuing an online masters degree reduce my loan burden?
What are my options if I face repayment difficulties?
Can I deduct interest on my health professions student loans?
Do I need a cosigner for my health professions student loan?
Are online programs more cost-effective than traditional on-campus options?
What are the disadvantages of getting a health professions student loan?
How do health professions student loans compare to private loan options?
How do I manage my health professions student loan?
Are there alternatives to health professions student loans?
Should I consider a small student loan to supplement my health professions student loan?
Can I qualify for loan forgiveness or repayment assistance as a health professional?
Other Things You Should Know About Health Professions Student Loan

What are health professions student loans?

Health professions student loans are a type of federal loan specifically designed to assist students pursuing degrees in specific health-related fields, including nursing, medicine, dentistry, optometry, pharmacy, and veterinary medicine. These loans are intended to help cover the cost of tuition, fees, and other educational expenses for students in eligible health professions programs. The loans typically offer low interest rates and have favorable terms compared to other types of student loans.

To give you an idea, the average total cost of medical school is $235,827. Meanwhile, the total cost of a Bachelor of Science in Nursing (BSN) program ranges from $89,500 to $211,400. The total cost of education, of course, would still vary depending on factors like the type of institution, location, and whether you are attending school as an in-state or out-of-state student. Needless to say, many students cannot afford this amount.

What are the types of health professions student loans for 2025?

There are four different types of health professions student loans:

1. Health Professions Student Loan (HPSL)

Available to students pursuing degrees in health professions such as dentistry, optometry, pharmacy, podiatric medicine, and veterinary medicine.
Offers a fixed low-interest rate (5%).
Requires financial need and satisfactory academic progress.
Includes a grace period and deferment options.

2. Primary Care Loan (PCL)

For the PCL, there is a service commitment requirement. Borrowers must commit to working in primary care fields for a specified period after graduation. This is intended to encourage more medical graduates to enter primary care, which is often underrepresented compared to specialties.

Designed for medical students who commit to working in primary care fields, such as family medicine, internal medicine, pediatrics, and preventive medicine.
Offers a fixed low interest rate (5%).Requires financial need and satisfactory academic progress.
Includes a grace period and deferment options.
Enforces a service commitment to primary care for a specified period after graduation.

3. Loans for Disadvantaged Students (LDS)

The LDS program aims to support students from disadvantaged backgrounds and promote diversity within the health professions. Eligibility is determined by factors such as family income and educational background, providing opportunities for students who might face significant financial barriers.

Aimed at students from disadvantaged backgrounds who are pursuing degrees in health professions.
Offers a fixed low-interest rate (5%).
Requires financial need, with eligibility determined by factors such as family income and educational background.
Includes a grace period and deferment options.
Helps promote diversity in the health professions by supporting students who might otherwise face significant financial barriers.

4. Nursing Student Loan (NSL)

Available to students enrolled in nursing programs.
Offers a fixed low-interest rate (5%).
Requires financial need and satisfactory academic progress.
Includes a grace period and deferment options.
Specifically supports students aiming to enter the nursing profession, addressing the ongoing demand for qualified nurses.

These loan programs are designed to support students in critical health professions, ensuring they have the financial resources needed to complete their education and enter fields essential to public health and well-being.

Who is eligible for a health professions student loan?

The four types of health professions student loans have unique qualification requirements.

Health Professions Student Loans (HPSL)

The ones qualified to avail of HPSLs are full-time or part-time college students pursuing higher education in any of these fields of study:

Doctor of Dentistry
Bachelor or Doctor of Science in Pharmacy
Doctor of Podiatric Medicine
Doctor of Optometry
Doctor of Veterinary Medicine

Loans for Disadvantaged Students (LDS)

LDS are for full-time students from a disadvantaged background seeking a degree in any of the following programs:

Doctor of Allopathic Medicine
Doctor of Osteopathic Medicine
Doctor of Dentistry
Bachelor or Doctor of Science in Pharmacy
Doctor of Podiatric Medicine
Doctor of Optometry
Doctor of Veterinary Medicine

According to the U.S. Department of Health and Human Services, students from a disadvantaged background are those whose families qualify as low-income based on governmental poverty guidelines, though the school’s financial aid office ultimately determines eligibility.

Nursing Student Loans (NSL)

NSLs are for nursing students who are enrolled at least half-time and are pursuing any of these nursing degrees:

Diploma in nursing Associate's degree in nursing Bachelor of Science in Nursing Graduate degree in nursing

Primary Care Loans (PCL)

PCLs are for full-time students who commit to getting residency training in primary care within four years after graduation and pursuing work as a primary care doctor for 10 years or until the loan is paid off. They should also be pursuing a full-time degree in one of the following:

Doctor of Allopathic Medicine
Doctor of Osteopathic Medicine

What makes health professions student loans different?

Unlike other federal student loans, health professions student loans are not funded by the Department of Education. Instead, these loans are subsidized by the Health Resources and Services Administration (HRSA). The health professions student loans are among the best medical school loans because they are different in the following ways:

Lower Interest Rates. While the interest rates for graduate unsubsidized loans are currently at 8.08% and the PLUS loans are 9.08%, health professions student loans boast fixed interest rates of 5%.
Longer Grace Period. Borrowers are usually provided with a grace period after graduation, during which no loan payments are required. With a health professions student loan, your payments are not due until a year or 12 months after you graduate. This is twice as long as other federal student loans.
Deferment Option. Borrowers are allowed to temporarily postpone their payments under certain conditions, such as during residency or further education.
Only Qualified Schools Can Participate. Schools that offer healthcare programs are the ones that administer the loans. In order to receive the funds, they need to apply with the federal government and meet specific criteria, such as having a default rate on existing loans that do not exceed 5%.
No Set Borrowing Amounts. Funding for the loans may be limited, but how much money you will receive is up to your school. Typically, you can’t borrow more than your school’s cost of attendance.
Fewer Repayment Programs. Health professions student loans are not eligible for income-driven repayment or Public Service Loan Forgiveness. However, all of the loans, except for Primary Care Loans, can be consolidated into direct loans to qualify for these programs.

How do you get a health professions student loan?

To obtain a Health Professions Student Loan (HPSL), follow these steps:

1. Determine Eligibility

Ensure you are enrolled in an eligible health professions program. Additionally, confirm that your school participates in the health professions student loan program.

2. Contact Your Financial Aid Office

Reach out to the financial aid office at your school to express your interest in the health professions student loan. They can provide specific guidance on the application process and any additional forms or documentation required by the school.

3. Complete the FAFSA

Submit the Free Application for Federal Student Aid (FAFSA). This form determines your financial need, which is a key criterion for health professions student loan eligibility. A school may also use its own form for these loans instead.

4. Complete Additional Forms

Fill out any additional application forms provided by your school’s financial aid office. This may include institutional forms specific to the health professions student loan program.

5. Gather Required Documents

Prepare necessary documentation, which may include:

Proof of U.S. citizenship or eligible non-citizen status.
Financial information for you and your family, including tax returns and income statements.
Enrollment verification from your eligible health professions program.

Even if you are considered an independent student, you would still be required to provide your parents’ financial information in order to receive a health professions student loan. Schools cannot waive this requirement unless your parents have died.

6. Submit Documentation

Submit all required documentation to your financial aid office, ensuring you meet any deadlines they provide. This typically includes:

FAFSA results.
Financial need analysis forms.
Proof of enrollment and academic progress.

7. Review Loan Terms

If you are approved for the loan, carefully review the loan terms, including the interest rate, repayment options, and any service commitments (particularly for Primary Care Loans).

8. Sign the Promissory Note

Sign the promissory note agreeing to the terms and conditions of the loan. This legally binding document outlines your responsibilities and the repayment terms.

9. Receive Funds

Once you have completed all necessary steps, your loan funds will be disbursed directly to your school to cover your tuition and other educational expenses. Any remaining funds may be disbursed to you for other costs associated with your education.

10. Maintain Eligibility

To continue receiving funds, you must maintain satisfactory academic progress in your health professions program and reapply each academic year by completing the FAFSA and any other required forms.

Important Reminder: If your school offers health professions student loans and you’re eligible, the loan will be listed on your financial aid award letter, along with any other financial aid you are offered. Make sure that before taking on any loans, you exhaust free aid like grants and fellowships. Then take out your health profession student loan before other student loans for medical school because of its low interest rates, generous interest subsidies, and long grace periods.

How long does it take to get your health professions student loan approved?

The approval process for a health professions student loan can vary depending on several factors, including the efficiency of your school's financial aid office and how quickly you submit the necessary documentation. However, here's a general timeline:

1. FAFSA Submission:

Timeframe: Complete the Free Application for Federal Student Aid (FAFSA) as early as possible, typically in October for the upcoming academic year.
Processing Time: The FAFSA is usually processed within 3-5 days if submitted online, or 7-10 days if submitted by mail.

2. Verification and Documentation:

Timeframe: After your FAFSA is processed, your school's financial aid office may require additional documentation for verification, such as tax returns, proof of income, or other financial information.
Processing Time: This step can take anywhere from a few days to several weeks, depending on how quickly you provide the requested information and how busy the financial aid office is.

3. School Processing:

Timeframe: Once all documentation is submitted, the financial aid office will review your application, determine your financial need, and decide on your eligibility for the loan.
Processing Time: This process typically takes 2-4 weeks, but it can be longer during peak periods, such as the start of the academic year.

4. Loan Offer and Acceptance:

Timeframe: After your application is reviewed, you will receive a financial aid package that includes any loan funds for which you are eligible. You will need to review and accept the loan offer.
Processing Time: This can be done quickly online or in person, usually within a few days.

5. Promissory Note Signing:

Timeframe: Once you accept the loan, you will need to sign a promissory note agreeing to the loan terms.
Processing Time: This can often be completed online or via mail and typically takes a few days to a week.

6. Disbursement of Funds:

Timeframe: After all steps are completed, your loan funds will be disbursed directly to your school to cover tuition and other educational expenses.
Processing Time: Disbursement usually occurs at the start of the semester, but the exact timing depends on your school's schedule.

Overall Timeline:

In total, the process from submitting your FAFSA application form to receiving your loan funds can take anywhere from 4 to 12 weeks, depending on how quickly each step is completed and how busy the financial aid office is.

health professions student loan approval process duration

What are the advantages of getting a health professions student loan?

Health professions student loans offer several advantages that make them an attractive option for students pursuing degrees in eligible health-related fields:

Low Fixed Interest Rates. Health professions student loans typically offer a low, fixed interest rate of 5%. This rate is often lower than what is available through private lenders and is stable, meaning it won't fluctuate over time.
No Fees. These loans usually do not have origination fees, prepayment penalties, or other associated fees, making them cost-effective compared to some other loan options.
Need-Based Aid. Health professions student loans are awarded based on financial need, ensuring that students who require financial assistance the most can access these loans.
Flexible Repayment Options. Health professions student loans come with a variety of repayment options, including deferment during residency or further education and a grace period after graduation, allowing students to start repaying their loans when they are better positioned financially. Loans in this program also typically come with a 10-year repayment plan. However, these loans can be consolidated with federal Direct Loans if you want to extend your repayment period or sign up for repayment programs such as income-driven repayment plans.
No Interest Accrual During School. With a health professions student loan, borrowers can benefit from zero interest accrual during school and for 12 months after graduation.
Grace Period. Borrowers typically receive a one-year grace period after graduation before they are required to begin making payments. This gives graduates time to find employment and stabilize their financial situation. One exception is NSL, which has a nine-month grace period.
Deferment and Forbearance. Health professions student loans offer deferment options, allowing borrowers to temporarily postpone payments during certain periods, such as during residency or other qualifying circumstances. Interest may be subsidized during deferment, reducing the overall cost.
Subsidized Interest. Interest may be subsidized during periods of deferment, meaning the government pays the interest that accrues during this time. This can significantly lower the total cost of the loan.
Service Commitment for Primary Care Loans. For those taking out PCLs, there is a commitment to work in a primary care field after graduation. This not only helps fulfill a critical need in healthcare but also ensures lower interest rates and specific repayment benefits.
Promotes Diversity. The Loans for Disadvantaged Students (LDS) program aims to support students from underrepresented or disadvantaged backgrounds, helping to increase diversity within the health professions.
Targeted Financial Support. HPSL loans are specifically designed to support students in health professions, making them more tailored to the unique financial needs and career paths of students in fields like medicine, dentistry, pharmacy, and more.
Potential for Loan Forgiveness. While health professions student loans do not offer the same loan forgiveness options as federal loans, students working in certain public health or nonprofit settings may be eligible for other loan forgiveness programs, especially if they combine their health professions student loans with other federal loans.
Encourages Primary Care Careers. Through the Primary Care Loan program, health professions student loans encourage medical students to enter primary care fields, which are often underrepresented. This not only benefits the individual financially but also addresses a critical need in the healthcare system.

Overall, health professions student loans provide a financially favorable option for students pursuing careers in healthcare, offering low-cost funding, flexible repayment, and targeted support that aligns with the demands of their chosen professions.

Can I consolidate or refinance my health professions student loan?

Health professions students may explore consolidation or refinancing to streamline repayment and potentially secure lower interest rates. Consolidation typically involves combining multiple federal loans into one, while refinancing transitions your federal loan into a private product, which can affect federal benefits such as income-driven repayment or forgiveness options. Evaluate each option based on eligibility criteria, long-term financial implications, and loss of specific protections. For students facing overdue financial obligations, consider options like grants for past due tuition as part of a broader strategy.

Can pursuing an online masters degree reduce my loan burden?

For some health professionals, advancing education through accredited online master’s programs offers a strategic pathway to enhance career prospects and ease long‐term loan burdens. Evaluating the return on investment of further studies may open doors to higher earning potential and access to additional funding benefits, such as targeted repayment plans or forgiveness opportunities. In this context, exploring the best online masters degree might align with your long-term financial goals and professional advancement without duplicating existing funding options.

Are online programs more cost-effective than traditional on-campus options?

When evaluating your education financing, it is vital to compare the overall cost structures of accredited online programs with those of traditional on-campus curricula. Accredited online programs can offer reduced ancillary expenses and flexible scheduling, potentially lowering the total amount you borrow. However, ensure that these programs provide the necessary clinical experiences and comply with industry accreditation standards, as these factors directly affect your long-term career prospects and earning potential. For additional insights on cost comparisons, consider our article Are online degrees cheaper than in person?

What are the disadvantages of getting a health professions student loan?

While health professions student loans offer several advantages, there are also some disadvantages to consider:

Limited Availability. Health professions student loans are only available to students in specific health-related programs, such as dentistry, optometry, pharmacy, podiatric medicine, and veterinary medicine. Students outside of these fields cannot access this type of loan.
Need-Based Qualification. Health professions student loans are awarded based on financial need, which means not all students may qualify. Students who do not demonstrate sufficient financial need may need to seek alternative funding sources.
Mandatory Service Commitment (Primary Care Loans). For those who take out a PCL, there is a mandatory service commitment to work in a primary care field after graduation. Failing to meet this commitment can result in the loan converting to a higher interest rate and different repayment terms.
No Income-Driven Repayment Plans. Health professions student loans do not offer income-driven repayment plans like those available with federal Direct Loans (e.g., Income-Based Repayment or Pay As You Earn). This limits flexibility in managing loan payments based on income, particularly for graduates in lower-paying positions. However, you can still consolidate these loans with federal Direct Loans if you want to extend your repayment period or sign up for repayment programs such as income-driven repayment plans.
No Forgiveness Options. Health professions student loans do not include specific loan forgiveness programs, such as Public Service Loan Forgiveness (PSLF) available for federal Direct Loans. This can make it more challenging for borrowers seeking to have their loans forgiven after working in public service or nonprofit sectors.
Limited Deferment and Forbearance Options. Although health professions student loans offer deferment and forbearance, the options are more limited compared to federal loans. Borrowers may not have as much flexibility in pausing or reducing payments during financial hardship.
Less Awareness and Information. Health professions student loans may not be as widely known or understood as other loan programs, leading to potential confusion or lack of information for students when comparing their options.
Complex Application Process. The application process for health professions student loans can be more complex and require additional documentation compared to other types of federal loans. This includes proving financial need, which might involve more paperwork and verification from the school.
Institutional Control Over Funds. Health professions student loan funds are typically administered by the school, and the availability of funds may vary depending on the institution’s budget and resources. This could lead to uncertainty in funding availability year-to-year.

Considering these disadvantages, students should carefully weigh their options and consider how the terms of health professions student loans align with their financial needs and career goals. It’s essential to explore all available funding sources, including federal loans, grants, scholarships, and private loans, to make an informed decision.

How do health professions student loans compare to private loan options?

When weighing health professions student loans against private loan options, it's critical to evaluate interest rates, repayment flexibility, and eligibility requirements. Health professions student loans typically offer subsidized interest, meaning the government pays the interest while you’re in school or during deferment. In contrast, most private loans begin accruing interest immediately after disbursement.

Additionally, federal options like health professions student loans may include income-driven repayment plans and forgiveness opportunities, especially for borrowers who work in qualifying public service roles. However, they often come with strict eligibility criteria, such as requiring parental financial information even for independent students, which can be a limiting factor depending on your circumstances.

Private student loans, though potentially offering more discretion over borrowing amounts, often come with variable interest rates and less borrower protection. If you're preparing for a career in dentistry, for instance, exploring the best dental school loans can provide a broader perspective on competitive rates and benefits tailored to specialized professions.

Ultimately, understanding the long-term implications of your funding choice is essential. Since private loans rarely offer repayment flexibility or federal forgiveness programs, exhaust your eligibility for health professions student loans first before considering private lenders as a supplementary option.

How do I manage my health professions student loan?

Managing your health professions student loan effectively requires careful planning and consistent attention to your financial obligations. Here are key steps to help you manage it:

Understand Your Loan Terms. Review the terms of your loan, including the interest rate, repayment schedule, grace period, and any deferment or forbearance options. Understanding these details will help you plan for repayment and avoid surprises.
Keep Track of Your Loan Details. Maintain accurate records of your loan balance, interest accrual, and any payments made. Use tools like spreadsheets, budgeting apps, or loan servicer portals to track your loan details.
Utilize Your Grace Period. Take advantage of the one-year grace period after graduation to prepare for repayment. During this time, assess your financial situation, secure employment, and create a budget that includes your upcoming loan payments.
Set Up a Repayment Plan. Choose a repayment plan that fits your financial situation. Health professions student loans typically offer a standard repayment plan, but you may have options for extended repayment based on your circumstances. Consider your income, expenses, and other financial goals when selecting a plan.
Make Payments on Time. Ensure that you make all loan payments on time to avoid late fees and potential damage to your credit score. Set up automatic payments if possible to avoid missing due dates.
Consider Extra Payments. If your financial situation allows, consider making extra payments toward your loan principal. This can reduce the overall interest paid and shorten the repayment period. Since health professions student loans do not have prepayment penalties, this strategy can save you money in the long run.
Explore Deferment and Forbearance Options. If you face financial hardship, check whether you qualify for deferment or forbearance. These options allow you to temporarily postpone payments, but be aware of the conditions and whether interest will continue to accrue during these periods.
Stay in Contact with Your Loan Servicer. Regularly communicate with your loan servicer to stay informed about your loan status, payment options, and any changes to your repayment plan. Update your contact information to ensure you receive all communications.
Monitor Interest Accrual. Keep an eye on how interest accrues on your loan, especially if you’ve deferred payments or are in a period of forbearance. Understanding how interest impacts your balance can help you make informed decisions about managing your debt.
Budget for Your Loan Payments. Incorporate your loan payments into your monthly budget. Prioritize your loan payments alongside other essential expenses, and adjust your spending habits to ensure you can meet your repayment obligations.
Consider Loan Consolidation. If you have multiple student loans, you may explore loan consolidation options. Consolidating can simplify your payments by combining multiple loans into a single monthly payment, but it may also impact your interest rate and repayment terms.
Seek Financial Counseling. If you’re struggling to manage your loan payments or unsure of the best approach, consider seeking advice from a financial counselor. Many schools and nonprofit organizations offer free or low-cost financial counseling services.
Plan for Your Service Commitment (If Applicable). If you have a PCL with a service commitment, plan your career path accordingly. Ensure you meet the service requirements to avoid penalties, such as higher interest rates or immediate repayment demands.
Stay Informed About Loan Forgiveness Programs. Although health professions student loans do not offer specific forgiveness options, you may still qualify for other loan forgiveness programs if you work in certain public health or nonprofit sectors. Research these opportunities to see if they align with your career goals.
Adjust Your Plan as Needed. Life circumstances can change, so be prepared to adjust your repayment plan if necessary. Stay flexible and proactive in managing your loan to ensure it remains manageable over time.

In SY 2022/23, the average family spends around $28,000 per year for college. About 19% of this comes from borrowed money. The chart below provides a breakdown of sources for college payment.

Are there alternatives to health professions student loans?

While health professions student loans offer considerable advantages, exploring alternative funding sources can help you minimize total debt or create a more diversified financial strategy for your education. Here are some noteworthy alternatives:

Scholarships and Grants. Unlike loans, scholarships and grants do not require repayment and are often tailored to healthcare students. These options may be awarded based on merit, financial need, or academic achievement. Check with professional organizations in your field, such as nursing or pharmacy associations, for scholarship opportunities specific to your discipline.
Federal Stafford or Grad PLUS Loans. If you cannot qualify for a health professions student loan, federal loans such as Stafford or Grad PLUS loans may offer viable alternatives. While their interest rates may not be as competitive as health professions loans, federal loans often include benefits like income-driven repayment plans and Public Service Loan Forgiveness (PSLF) opportunities.
Private Student Loans. Private loans can be another option, especially if you have reached federal borrowing limits. These loans are issued by private lenders and may include variable or fixed interest rates. However, they often lack income-driven repayment options and federal loan forgiveness programs. If considering private loans, researching specialized options such as MBA loans can provide additional funding paths for students pursuing advanced degrees in adjacent professional fields.
Employer Tuition Reimbursement Programs. Some healthcare employers offer tuition reimbursement or loan repayment assistance as part of their employee benefits programs. This is particularly common in underserved or high-demand areas where healthcare employers seek to attract talent.

By combining integrated strategies such as grants, scholarships, and various loan types, you can create a more sustainable way to finance your health education. Prioritize funding sources that offer repayment advantages or forgiveness options tied to your career path.

Can accelerated degree programs reduce my student loan burden?

Accelerated degree programs condense the traditional education timeline, allowing students to enter the workforce sooner. However, they require careful financial planning since the shortened duration may lead to a more concentrated period of loan repayment and limited time for accruing interest benefits typically available with longer programs. Evaluate whether the faster completion and earlier earning potential align with your capacity to manage debt, and consider exploring options such as accelerated school programs to tailor your education pathway effectively.

What are my options if I face repayment difficulties?

If you experience unexpected financial hardships that hinder your ability to make regular payments, several measures may help mitigate the impact. Consider exploring income-driven repayment plans, deferment, or forbearance options tailored to your situation, and promptly contact your loan servicer to discuss adjustments to your repayment schedule. Proactive engagement can help prevent default and protect your financial standing. Moreover, pursuing additional qualifications—such as the shortest PhD degree—may broaden your career prospects and enhance long-term financial resilience.

Can I deduct interest on my health professions student loans?

Many borrowers may be eligible to deduct a portion of the interest paid on health professions student loans, which can help lower taxable income. Tax benefits depend on factors such as income levels, filing status, and overall student loan debt. It is important to review IRS guidelines and income thresholds to determine eligibility for this deduction. For personalized advice on optimizing educational expenses alongside potential tax deductions, consult a qualified tax professional. Additionally, exploring reputable educational pathways like best online degree programs for working adults can further support your financial strategy.

Do I need a cosigner for my health professions student loan?

When your credit history is limited or below lender thresholds, a cosigner can reinforce your application and potentially secure better loan terms. A cosigner’s favorable credit profile may lower interest rates and improve overall loan eligibility. However, this role carries significant responsibility since the cosigner is liable if you default. Evaluate both the benefits and potential risks carefully before involving a cosigner, and consider all aspects of the financial commitment. For further clarification, see What is a cosigner on a student loan?.

Should I consider a small student loan to supplement my health professions student loan?

In certain situations, supplementing your primary funding with additional financial products can help cover gaps not addressed by standard loans. For instance, if your health professions student loan does not fully cover tuition or ancillary expenses, a small student loan might serve as an effective complement. Evaluate the terms of any supplemental loan carefully to ensure that additional borrowing aligns with your long-term financial strategy and repayment capabilities.

Can I qualify for loan forgiveness or repayment assistance as a health professional?

Several targeted forgiveness and repayment assistance programs exist that can significantly alleviate your financial burden after graduation. Many federal initiatives, such as Public Service Loan Forgiveness, are available for graduates employed in qualifying healthcare settings. In addition, some state-specific and employer-sponsored programs offer tailored support to professionals in high-need areas. To determine eligibility, review program-specific criteria surrounding work commitments, borrower history, and loan balances. For guidance on complementary educational pathways that may further optimize your funding strategy, explore FAFSA online schools.

Key Findings

The average cost of a medical school degree is $218,792, and every year, the average cost of medical school rises by $1,158.
The average medical school graduate owes $250,995 in total student loan debt.
73% of medical school graduates have educational debt.
70% of medical school students use loans specifically to help pay for medical school (as opposed to undergraduate or premed debt).
Gen Z doctors at the beginning of their careers earn an average of $183,873 annually while facing $117,206 in student loan debt—nearly 64% of their salary.
According to information collected by the College Board, 84% of medical students and 90% of other health science students graduate with debt.
The average debt loads vary among professions: $200,000 for physicians (2019), $183,014 for veterinarians (2019), $40,000–54,999 for graduate-level nurses (2017), $114,706 for physician assistants (2017), and between $83,000–124,000 for physical therapists (14–17).
In 2023, 92.8% of all student loan debt was federal while 7.2% belonged to private borrowers.

Other Things You Should Know About Health Professions Student Loan

Can I use health professions student loans for online programs?

Yes, you can typically use health professions student loans for online programs. As long as your program is accredited and meets the eligibility criteria for this type of loan, you should be able to apply for these loans. However, it's essential to check with your specific school's financial aid office to confirm their policies and procedures regarding online programs and your loan eligibility.

Who owes the most in student loans?

The groups that owe the most in student loans are typically individuals who pursued graduate or professional degrees, such as doctors, lawyers, and other advanced degree holders, as these programs often require borrowing substantial amounts of money. Additionally, students who attended private, for-profit institutions tend to accumulate higher debt levels due to the higher cost of tuition. Borrowers who did not complete their degrees but still incurred significant debt also contribute to this group, as they face challenges in repaying loans without the benefit of a degree to increase their earning potential.

What is the largest source of student loans?

The largest source of student loans in the United States is the federal government. Federal student loans, issued by the U.S. Department of Education through programs like Direct Loans (including subsidized, unsubsidized, PLUS, and consolidation loans), constitute the majority of student loan debt. These loans offer borrowers certain benefits, such as fixed interest rates, income-driven repayment plans, and options for deferment or forbearance, which are generally not available with private loans.

How do I know if my student loans are forgiven?

To determine if your student loans have been forgiven, you should:

Check your loan servicer's website: Most loan servicers provide online portals where you can view your loan status and any updates regarding forgiveness.
Contact your loan servicer directly: If you cannot find the information online, reach out to your loan servicer's customer service for assistance.
Review official government notifications: The Department of Education may send official notifications regarding loan forgiveness. Check your email and physical mail for any updates.

References:

Webster, P. and North, S.E. (2022, February). Health Professions Educational Debt: Personal, Professional, and Psychological Impacts 5 Years Post-graduation. National Institutes of Health, National Library of Medicine's National Center for Biotechnology Information.
Hanson, M. (2023, Sept. 17). Average Medical School Debt. Education Data Initiative.
Hanson, M. (2024, Jan. 16). Average Cost of Medical School. Education Data Initiative.
Johnson, H.D. (2024, July 17). Health professions student loans: What they are and how to apply. Bankrate.
Laurel Road. (2024, Feb. 26). Financial Survey: Healthcare Professionals & Student Loan Debt in 2024. Laurel Road.