You’ve made the decision to become a doctor and now you are wondering how you will afford four years of medical school. While the cost of a medical school education may seem daunting, there are resources available to help prospective doctors achieve their goals. PCOM’s Office of Financial Aid supports students in navigating the costs of medical school, helping them focus on achieving their goals.
Brad Schutts, MBA, associate director of financial aid, has years of experience in helping students understand and access financial aid options. Schutts emphasizes that while the transition to funding graduate education may seem challenging, the process is more straightforward than many expect.
“Things do change with medical school and that can be scary,” he said. “However, there are many well-traveled avenues to get applicants what they need.”
The first step in the process is completing the FAFSA (Free Application for Federal Student Aid) which will be available in December prior to the start of the academic year for which the student is applying for aid.
For medical students, federal financial aid serves as the primary funding source. There are three main options:
“A student can complete all of the paperwork necessary to cover their needs in an hour or two if truly necessary,” Schutts said.
Direct Unsubsidized Loans cover a significant portion of tuition for most students. Direct Graduate PLUS Loans can bridge any remaining gaps in funding but require a separate application and credit check. Completing a MPN (Master Promissory Note) for both loans as well as entrance counseling is required.
For scholarships, Schutts said, PCOM’s Office of Admissions identifies students who match the criteria of endowed scholarships. For those, no application or inquiry is needed because the process is automatic.
For private loans, Schutts advises students to look at more than the interest rate. Private loans may offer a better interest rate since the rate is not tied to treasury bills, but the applicant may need a cosigner and/or a secure support system for when they graduate as a more aggressive repayment plan is common.
Work-Study, according to Schutts, can be a source of supplemental income but the majority of funding will be through loans or scholarships.
“Usually, that means that a student sets [loans and scholarships] up to cover their needs and work-study can be for ‘walking around money’,” Schutts explained. “That way, if there is a particularly hard exam looming, a student won’t have the additional worry about working enough hours to cover necessities. Your job first and foremost is to be a student.”
Work-Study Programs offer supplemental income that students can use for non-essential expenses, allowing them to prioritize their studies.
At PCOM, completing financial aid requirements is simplified with tools and support that notify students of outstanding tasks, ensuring a smooth process.
Medical students face distinct financial challenges that set them apart from other graduate students. During clinical rotations, additional expenses may include:
PCOM provides resources and guidance to help students manage these financial challenges effectively, ensuring they can focus on their education.
Reducing overall debt is a critical component of financial planning for medical school. Schutts emphasizes the importance of mitigating costs to avoid incurring more debt than necessary.
Choosing affordable housing and limiting discretionary spending can lead to substantial savings over four years.
“This can’t always be done but having that mindset will pay off in the end,” Schutts said.
His other advice: Act like you are a student, not like a doctor.
“I say this in meetings with students all the time and it is meant to be very light,” he said. “There will be a time when you will have the funds to get the upgraded car or the extra square footage in your home, but it is not while you are a student and borrowing the money to fund that lifestyle.”
Paying off medical school debt typically takes 10–25 years, with various repayment plans available to fit different goals. Federal loan options include:
“We encourage recent graduates to contact a financial planner to be strategic with their money and their goals,” Schutts said. “If the graduate values homeownership, there are special programs like physician loans for a mortgage that are available. If retirement is important, they may recommend saving in a Roth IRA during their residency because contributions are post-tax; all qualified withdrawals do not have to be taxed which will help in their later, higher-earning years. If debt mitigation is important, then a more aggressive payment plan may be desirable.”
PCOM is committed to supporting students not only in their academic pursuits but also in managing the financial aspects of their education. With expert guidance, and streamlined financial aid processes, PCOM ensures that students can focus on their studies without undue financial stress.
By choosing PCOM, prospective medical students can confidently take the next step toward a rewarding career in medicine, knowing they have the resources and support needed to succeed.
Article last updated: Nov. 13, 2024
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