Best Private Student Loans for Medical School 2026: Comparing Options After Grad PLUS Elimination

Medical school has always been expensive, but the financing landscape is shifting in a major way. Starting in July 2026, new borrowers will lose access to Grad PLUS loans, leaving a significant gap between what federal loans cover and what medical school actually costs. For most students, private loans will be the primary tool to bridge that gap.

This guide compares private medical school loan options from five lenders, explains what to look for when choosing a loan, and walks through how to apply. Whether you are starting medical school this fall or planning ahead, understanding your private loan options now will help you borrow smarter.

Why will medical students need private loans after 2026?

Starting July 1, 2026, new medical school students will no longer have access to Grad PLUS loans. The One Big Beautiful Bill Act (OBBA) eliminated the program, which previously allowed students to borrow up to the full cost of attendance minus other financial aid. Under the new rules, professional students (including medical students) can borrow up to $50,000 per year in federal Direct Unsubsidized Loans, with a $200,000 lifetime aggregate cap.

That cap is part of a broader $257,500 universal federal loan limit that includes any undergraduate borrowing. Students who took on significant federal debt during undergrad may hit this ceiling before fully using their professional allocation.

The median four-year cost of attendance for medical school ranges from roughly $298,000 at public schools to over $408,000 at private institutions, according to the AAMC. For many students, the gap between federal loan limits and actual costs will be tens of thousands of dollars, making private loans a practical and necessary part of the financing plan.

Students who are already enrolled in medical school and have existing federal loans may be able to continue borrowing under the old limits for up to three academic years or until graduation, whichever comes first. New students starting in fall 2026 will not have this option.

What should you compare when choosing a medical school loan?

Before borrowing, compare offers from multiple lenders. The APR (annual percentage rate) is the best starting point because it reflects both the interest rate and any fees. Most private student loan lenders do not charge origination fees, but you should confirm this before applying.

Residency and fellowship deferment is one of the biggest differentiators among medical school loans. Because medical training extends well beyond graduation, the length and terms of post-graduation deferment can significantly affect your finances during residency. Look closely at how long each lender allows deferment and whether interest continues to accrue.

Repayment term length is another major decision. Longer terms mean lower monthly payments but more total interest paid over the life of the loan. Shorter terms cost less overall but require higher payments, which can be difficult to manage early in your career. Cosigner requirements, cosigner release policies, and whether you can apply without a cosigner are also worth comparing.

The table below summarizes key features across all five lenders covered in this article.

Sallie Mae Medical School Loans

Sallie Mae offers a dedicated medical school loan for students pursuing MD, DO, DPM, DVM, or VMD degrees. It stands out for having no cap on borrowing (up to 100% of cost of attendance) and one of the shortest cosigner release timelines at just 12 months of on-time payments. Sallie Mae also provides one of the longest post-graduation runways: a 48-month grace period, plus up to 48 additional months of residency and fellowship deferment (up to 84 months combined, per Sallie Mae).

The lender also offers a separate medical residency and relocation loan of up to $30,000 to help cover board exam fees, travel, and moving expenses.

• Fixed and variable interest rates available, with an autopay rate discount
• 48-month grace period, plus up to 48 months of additional residency/fellowship deferment
• No origination fees (late fees do apply)
• 20-year repayment term
• Can apply with or without a cosigner
• Approves borrowers enrolled less than half-time
• No soft-pull prequalification; applying triggers a hard credit inquiry

College Ave Medical School Loans

College Ave offers one of the widest selections of repayment term lengths among medical school lenders. Students can choose from five, eight, 10, 15, or 20-year terms, giving more control over the balance between monthly payments and total interest costs. If you choose full deferment, you won’t need to make full payments until 36 months after you leave school. One downside to be aware of: College Ave capitalizes unpaid interest monthly, meaning you will pay interest on interest during any period when you are not covering accrued interest.

• Fixed and variable interest rates available
• Deferment available during residency and fellowship
• No origination fees
• Five repayment term options to match your budget
• Cosigner release available after 24 on-time monthly payments
• Apply online; cosigner applies separately

Earnest Medical School Loans

Earnest positions itself as a flexible option for medical students, offering a nine-month grace period after graduation (longer than most lenders) and the ability to skip one payment per year at no cost. The lender does not charge late fees or origination fees, and borrowers can opt for biweekly payments instead of monthly, which can reduce total interest over the life of the loan. Earnest requires a minimum credit score of 650 and covers up to 100% of the cost of attendance. One notable limitation: Earnest does not offer cosigner release, so your cosigner remains on the loan until it is paid off or refinanced.

• Deferment available during residency and fellowship
• No late fees or origination fees
• Can apply with or without a cosigner (no cosigner release)
• Skip one payment per year
• Biweekly payment option available
• Partial forbearance option (not just full forbearance)
• Nine-month grace period after graduation

SoFi Medical School Loans

SoFi’s graduate medical loan covers students pursuing MD, DO, DPM, DVM, or VMD degrees and offers up to 100% of the cost of attendance. Borrowers can choose from four in-school repayment options (deferred, interest-only, $25 monthly flat payment, or immediate repayment), each of which may affect the interest rate offered. SoFi also provides member benefits like financial planning tools and career coaching.

• Fixed and variable interest rates available
• Up to 48 months of deferment during residency and fellowship
• No origination fees or late fees
• Repayment terms from five to 20 years
• Can apply with or without a cosigner
• Member benefits including financial planning access

Ascent Student Loans

Ascent offers loans for a broad range of health professional programs, including medical, optometry, osteopathic, podiatric, and veterinary medicine. The lender is notable for offering no-cosigner loan options for students who may not have a creditworthy cosigner available. Borrowers can defer payments for up to 36 months after graduation.

• Fixed and variable rates with no origination fees
• Up to 36 months of deferment after graduation
• No-cosigner options available
• Flexible in-school repayment choices
• 1% cash back graduation reward

How do you apply for private medical school loans?

Start by maxing out your federal loan eligibility. Log in to your account at StudentAid.gov to check your remaining federal borrowing capacity and confirm how much of the $200,000 professional cap you have left.

Next, prequalify with multiple lenders. Most lenders offer prequalification with a soft credit check, which lets you compare estimated rates and terms without affecting your credit score. Note that Sallie Mae does not offer soft-pull prequalification; applying with them triggers a hard credit inquiry. Always compare the APR rather than just the interest rate, since APR includes fees and gives a more accurate picture of total costs.

Coordinate with your school’s financial aid office before finalizing any loan. They can certify your cost of attendance and help you determine exactly how much private borrowing you need. Borrow only what you need to cover the gap between federal aid and your actual expenses.

Bottom Line

Medical school financing is changing significantly in 2026, but the approach remains straightforward. Exhaust your federal loan options first, then calculate the gap between your federal borrowing limit and your actual cost of attendance. Compare private loan offers from multiple lenders, paying close attention to residency deferment terms, cosigner policies, and total cost over the life of the loan.

Private loans are not a last resort. For most medical students borrowing after July 2026, they will be a standard part of the financing plan. Prequalifying with several lenders takes minutes and can save you thousands over the repayment period. And remember, you can always refinance later if rates improve or your financial situation changes.

Frequently Asked Questions