Loan Options for Medical Students

Federal Direct Unsubsidized Loan

Annual loan limit: $50,000

Current fixed interest rate: 7.94% (as of July 1, 2025; subject to change)

Federal Direct Unsubsidized Loans are low-interest loans offered by the U.S. Department of Education to help with the cost of medical school. Medical students are eligible for federal unsubsidized loans only and must submit a FAFSA to be considered. Medical students are not eligible for federal subsidized loans or Graduate PLUS Loans.

Loan Information

The interest rate will be fixed for the life of the loan. Each year, new rates will be established for newly originated loans. The U.S. Department of Education is the lender and charges an up-front origination fee. The origination fee is currently 1.057%.

The Department of Education defers repayment of the loan principal while the student is enrolled at least half-time and for the first six months after the student graduates, leaves school, or enrolls in fewer than half-time hours.

The student is responsible for paying the interest on the outstanding principal during all periods, including times of approved deferred principal payments; however, the student can elect to capitalize the interest.

See Federal Direct Loan Interest Rates to view the Unsubsidized Loan interest rates. See Federal Direct Loan Origination Fees to view the Unsubsidized Loan fee.

Amounts
Process
  • Complete the Free Application for Federal Student Aid (FAFSA) process.
  • The UGA Office of Student Financial Aid (OSFA) will include the loan amount for which the student is eligible on their Athena account. The student must take action by accepting or declining the loan offer in the portal.
  • If a first-time borrower at UGA, or if otherwise required, the student must complete the Entrance Counseling and Master Promissory Note applicable to Federal Direct Subsidized/Unsubsidized Loans. See the “Graduate / Professional Students” section under Federal Direct Loan (FDL) Application steps for more information.
Eligibility
  • Students must meet all Basic Student Eligibility criteria.
  • Students cannot have reached their Federal Unsubsidized Loan Aggregate Limit.
    • $200,000 unsubsidized loan limit for professional degree
    • $257,500 cap on all federal student loan limits combined, including undergraduate and professional borrowing
  • Must be enrolled at least half-time to be eligible for that semester’s unsubsidized loan.
Canceling Your Federal Direct Student Loan

If your loan has not yet been disbursed to you, you can cancel it at any time in one of the following ways:

If your loan money has already been disbursed, either by crediting the funds to your student account or paying it directly to you, there are two ways to cancel all or part of your loan:

  • You can notify Student Accounts Services you wish to cancel your loan within 14 days of their notification to you that your loan funds have been credited to your account or by the first day of classes, whichever is later. If the loan funds have been used to pay for all of or a portion of your account charges, you must make other arrangements to pay those charges prior to established deadlines.
  • Within 120 days of the date UGA disburses your loan money, you may return all or part of the loan to the U.S. Department of Education. Contact your loan servicer for instructions on how to do this.

You do not have to pay interest or the loan fee on the part of your loan that is canceled or returned within the timeframes described above, and if you received an up-front interest rebate, the rebate does not apply. Your loan will be adjusted to eliminate any interest, loan fee, and rebate amount that applies to the amount of the loan that is canceled or disbursed.

Private (Alternative) Education Loans

Private student loans are loans funded by banks, credit unions, or state agencies. Private loans can be used to fill in any gaps in the cost of medical school after all federal options have been used.

Types of Private Loans for Medical Students:

  • Medical Student Loan – Available for students to borrow for medical educational expenses
  • Parent Student Loan – Available for parents to borrow for their medical student for medical educational expenses
  • Residency Loan – Available for students to cover such things as board examination fees, travel, interview, and relocation costs

For more information on private (alternative) education loans, please visit the Office of Student Financial Aid website or Studentaid.gov.

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