The world of paying for medical school had a significant change with the passage of the One Big Beautiful Big Act (OBBBA) in the summer of 2025, although the gradual implementation of new policies has lessened the blow. New medical students for the 2026-2027 year are limited to borrowing just $50,000 in federal student loans per year. That rule doesn't apply to MS2s, MS3s, or MS4s, though. They all get grandfathered into the federal loan policies that existed prior to OBBBA.
This cap on federal borrowing has created a “funding gap” which will obviously vary by school and student. If you're at a very inexpensive school, maybe you won't have a gap at all. About a quarter of students don't borrow money to pay for medical school because their parents, spouse, or savings are shelling out, or they've signed a contract program, such as HPSP, IHS, NHSC, or MD/PhD. Some students are getting enough help from family that they only have to borrow the federal money, too.
But a significant portion of new MS1s are going to need private loans this year, which hasn't happened for a couple of decades since federal borrowing limits went away in 2006.
The annual gap ranges from $35,000 (median medical student) to $50,000 (median dental student) to a student paying for the entire cost of attendance with borrowed money. I think medical school is still worth attending, even if you have to borrow the entire cost. But the following needs to occur:
- You finish school in good standing and match into residency.
- You finish residency in good standing and get the median job in your chosen specialty.
- You work full-time for at least five years.
- You learn how to manage money.
If you can do all of that, you can pay for school within 2-5 years of completing your training. I promise. It's going to work out. Stick around here, and we'll show you what to do and inspire you to actually do it. In fact, many of you won't even have to pay back a big chunk of your federal loans thanks to Public Service Loan Forgiveness. We'll help you with that, too, when the time comes.
In the meantime, you need to actually get those private loans. We've been working with lenders for years, mostly to help doctors refinance their student loans. Well, these same lending partners giving docs the best deals on refinanced student loans are also now doing private student loans. Yes, they make money when you borrow from them. Yes, we make money when we refer you to them. But if it's the best deal for you, it's the best deal for you, and as near as I can tell, it is.
We have four partners right now offering private student loans. Two of them offer you cash back when you go through our links. We will throw in the student version of our flagship Fire Your Financial Advisor online course for all four of them. Either way, it's a better deal than you will get by going directly to the lenders, and you get to support WCI at the same time.
Spread the word. Here are our lending partners:
† Bonus may include cash rebates and value of free course. Student loan borrowers who use the WCI links will be enrolled in The White Coat Investor’s flagship course, Fire Your Financial Advisor: STUDENT for free ($99 value). Borrowers may still receive the amazing cash rebates that WCI has negotiated with lenders. Offer valid for loan applications submitted from May 1, 2026 through October 31, 2026. Free course must be claimed within 90 days of first loan disbursement. To claim free course enrollment, visit https://www.whitecoatinvestor.com/loanbonus.
We recommend you check with two or three of these companies and go with the one offering you the lowest interest rate and best terms. And don't forget to max out the federal student loans FIRST before taking out private loans. Private loans will never be eligible for the Income Driven Repayment programs like RAP that you will want in residency or PSLF.
I've been trying to get information from MS1s to see what kinds of rates and terms they've been getting for their private student loans, but I think it's still just a little too early. We're not hearing back from very many of them yet. So, as you take out your private loans for your first year of school this summer or fall, please report below in the comments section on the rates and terms you're seeing.
What do you think? How are the first years you know planning to pay for medical school? What are private loan rates and terms looking like for you?