The interest you get on a medical school loan, which are typically federal loans for graduate and professional students, varies by loan type. On average, for loans applicable to medical students, the interest rates can range from 6.16% to 7.20%.
Understanding Medical School Loan Interest Rates
Medical school students primarily take out federal student loans designed for graduate and professional studies. These generally include Direct Unsubsidized Loans and Direct PLUS Loans (also known as Grad PLUS loans). The specific interest rate you receive depends on the type of loan and the academic year in which it is disbursed.
Here’s a breakdown of the average interest rates for federal loans relevant to medical school students:
| Loan Type | Average Interest Rate |
|---|---|
| Direct Unsubsidized Loans (for graduate students) | 6.16% |
| Direct PLUS Loans (for graduate and professional students) | 7.20% |
Direct Unsubsidized Loans
- Average Interest Rate: 6.16%
- These are common federal loans for graduate students, including those in medical school.
- Interest begins to accrue immediately after the loan is disbursed, even while you are still in school.
Direct PLUS Loans (Grad PLUS Loans)
- Average Interest Rate: 7.20%
- These federal loans are available to graduate and professional students up to the cost of attendance, minus any other financial aid received.
- They typically have a slightly higher interest rate than Direct Unsubsidized Loans.
- Interest also begins accruing from the time the loan is disbursed.
It's important to note that these figures represent average interest rates. The actual interest rate for new federal student loans is set annually by Congress and can vary from year to year. These rates are fixed for the life of the loan once disbursed.
