Key takeaways
- Medical school costs upwards of $64,000 a year in tuition, fees and health insurance for a resident going to a public institution.
- 71 percent of students borrow money to pay for medical school, with an average balance exceeding $210,000.
- Applying for state assistance, income-driven repayment programs or refinancing are some ways graduates can make their repayment more manageable.
The average medical school debt in 2024 was over $200,000, according to the Association of American Medical Colleges (AAMC). However, graduates can pay over $300,000 over the life of their loans due to interest charges.
Though this figure is staggering, it’s not surprising. During the 2024-25 academic year, resident students at public institutions paid an average of $41,869 for tuition, fees and health insurance. Non-resident students paid even more: a whopping $66,353.
Because most medical school students have debts in the six-figure range, knowing how to manage that debt can be a critical skill both during school and after graduation.
Medical school debt statistics
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Graduates who attended state institutions carried an average student debt of $203,606 in 2024.
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Private school graduates owed $227,839, on average.
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Most (73%) medical school graduates from public institutions have debt at graduation, and slightly less (67%) of medical students from private schools graduate with debt.
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In total, 71% of all medical students have education-related debt after graduation, with an average balance of $212,341.
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Medical school graduates also have other debts, including a median of $5,000 on credit cards and a median of $10,000 in residency and relocation loans.
What are the average interest rates on medical school loans?
If you have federal student loans, interest rates are updated annually. Private student loans, on the other hand, typically offer a range of interest rates, which depend on your credit profile or your cosigner’s.
For the 2024-25 school year, the interest rate on Direct Unsubsidized Loans for graduate students is 8.08 percent. Direct PLUS Loans — used for graduate and professional students — have an interest rate of 9.08 percent.
Private student loan interest rates range from just under 5 percent to around 18 percent, depending on the lender and your credit profile. Stronger creditworthiness will lead to lower interest rates.
Most student loans — whether private or federal — accrue interest while you’re in school, even if you elect not to make payments. The interest will compound if you choose to continue that deferral through residency. Once you’re ready to make payments, the lender will capitalize the interest, adding it to your principal balance and increasing your monthly payment.
How long does it take to pay off medical school debt?
The standard repayment term for federal student loans is 10 years. But if you have a hard time keeping up with your monthly payments you can extend your repayment schedule to up to 30 years with alternative repayment plans.
| Repayment plan | Repayment term |
| Consolidation loan | Up to 30 years |
| Extended | Up to 25 years |
| SAVE | 10 to 25 years |
| Income-based | 20 or 25 years |
| Income-contingent | Up to 25 years |
Private student loan companies set their repayment terms, but most private medical school loans will allow you to choose terms from five to 20 years. You can also refinance your loans to new terms, extending the payoff period. How long it takes to repay your medical school debt depends on your salary and other expenses.
How do I reduce my medical school debt?
You may find it difficult to work even a part-time job while in medical school, so you may need scholarships and grants to reduce your reliance on debt to get you through college.
Once you finish school, you’ll have a few different options to reduce your student loan balance or at least the amount of interest you pay on the debt.
Student loan repayment assistance programs
Federal agencies and state governments offer a variety of student loan repayment assistance programs. These programs aren’t technically forgiveness programs because the benefit doesn’t come directly from the U.S. Department of Education.
However, depending on the program, you could get tens of thousands of dollars in repayment assistance. The Association of American Medical Colleges maintains a list of state and federal programs you may be able to take advantage of.
One thing to remember is that these programs typically only assist borrowers with federal loans. If you have private medical school student loans, they may not be eligible.
Student loan refinancing
Student loan refinancing replaces one or more existing loans with a new one through a private lender. Depending on your income and credit history, you may qualify for student loan refinance rates that are lower than what you’re currently paying, which can save you money and reduce your monthly payment. You’ll also be able to shorten or extend your loan repayment term — lenders typically offer terms ranging from five to 25 years.
If you have federal loans, refinancing may not be the best option if you’re working toward forgiveness, a repayment assistance program or an income-driven repayment plan.
Student loan forgiveness programs
The federal government offers student loan forgiveness to borrowers who work for a government agency or eligible not-for-profit organization. To qualify for the Public Service Loan Forgiveness (PSLF) program, you’ll need to work full-time for an eligible employer while making 120 qualifying monthly payments. Once you’ve completed all the requirements, your remaining debt will be forgiven.
You can also achieve forgiveness by getting on an income-driven repayment plan and completing the repayment term. After 20 to 25 years of payments, your remaining debt will be forgiven. To take out a federal student loan for medical school, you have to complete the FAFSA.
Is medical school worth it?
The answer to this question is different for everyone. According to the Bureau of Labor Statistics, the median salary for physicians and surgeons is $239,200 or more. As a result, the potential return on investment for medical degrees could more than offset the significant debt many students have to take on – especially over the course of a career.
The cost of medical school entails tuition, but also admission expenses, like application fees and registration for the MCAT exam. Once you are admitted, you will want to consider living expenses as well, given the academic pressure of medical school does not typically allow for outside employment.
Starting salaries vary and depend on location and what kind of medicine you choose to pursue. To build an understanding of whether medicine is a worthwhile pursuit for you, consider arranging some informational interviews with professionals who practice in an area of your interest.
Bottom line
The average medical school debt is over $200,000 — a hefty amount of debt to carry at the start of your career. Given the average salary for a medical doctor, paying off the loan ahead of the end of a 10 year or longer loan term may be possible, but will depend on where you work and your specialty.
While you can reduce some of the cost by going to a public, in-state school and through scholarships and grants, it’s still a large sum to pay off — especially when you add the interest you’re paying. Make sure to set a financial plan in place early to avoid
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