The best source of information about future debt obligation is the financial aid officer at the medical school where the applicant has been admitted. Under the new program, beginning in July 1993, schools can make loans only to medical students who agree to enter and complete a residency within four years in family medicine, osteopathic general practice, general internal medicine, general pediatrics, or preventive medicine, and to practice primary health care until the loan is repaid. If the PCL recipient enters a residency training program in another specialty, the interest rate rises to 12 percent, retroactive to the initiation of the loan. An Overview of Financial Considerations for Medical School Financing a medical school education is a substantial challenge, and students should be prepared to spend a considerable amount of time researching options and preparing application materials. Needless to say, the earlier one begins, the greater the chance of success.
Deadlines are important, as is full cooperation with medical school financial aid officers.
The primary method of financing a medical education is through loans, most of which are government subsidized in one way or another. The general strategy is to find as much money as possible at low interest rates and then fall back to increasingly onerous levels of interest as necessity dictates. Further, only some of the loan programs offer deferment during internship and residency, when income is low. This does not include undergraduate debt. The situation for current undergraduates planning to go on to medical school will likely be worse.