Affording Medical School: Guide to Costs and Aid

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With approximately 23,600 annual openings for physicians and surgeons projected through 2034, demand for medical professionals remains high. However, the cost of education is rising, and federal aid rules are shifting significantly on July 1, 2026.

Average Cost of Medical School (2025–2026)

Medical school costs vary based on whether the institution is public or private and your residency status:

The average cost of medical school is about $59,000 per year, and across four years, the average total is more than $235,000.

These figures typically cover tuition, fees, and health insurance. Expect an additional $20,000–$40,000 annually for housing, food, and books.

Changes to Federal Aid (Effective July 1, 2026)

The "One Big Beautiful Bill" (OBBB) fundamentally changes how students finance medical degrees:

• Elimination of Grad PLUS: New borrowers will no longer have access to Grad PLUS loans, which previously covered the full cost of attendance.
• New Borrowing Caps: Federal loans for medical students are now capped at $50,000 per year with a $200,000 lifetime limit.
• Funding Gaps: By completing the Free Application for Federal Student Aid (FAFSA), graduate students can access federal work-study and loan programs. However, since the total cost of medical school often exceeds $250,000, many students will face a funding gap that federal aid will no longer cover.

Scholarships and Service-Based Incentives

To bridge the gap, explore these programs:

• NC Forgivable Education Loans for Service (FELS): The FELS program, established by the North Carolina General Assembly, provides up to $14,000 annually for doctoral students (with a $56,000 aggregate limit) who commit to working in critical-shortage professions in North Carolina.
• NCDHHS Loan Repayment: The North Carolina Loan Repayment Program (NC LRP) offers up to $100,000 in tax-free loan repayment for physicians and dentists who commit to four years of service in rural or underserved communities.
• National Health Service Corps (NHSC): Programs like the "Students to Service" loan repayment offer significant aid for those entering primary care.

Private Loans

When scholarships and federal loans fall short, private loan options can cover remaining costs.

The NC Assist Graduate Student Loan can help students bridge the funding gap after exhausting federal aid options. Graduate students can benefit from a fixed-rate student loan with no application, origination, or prepayment fees. The loan covers tuition, housing, books, and other fees, with a maximum amount of up to $200,000 for graduate students. The loan also offers a 0.25% interest rate discount when in repayment and enrolled in automatic payments.

While the expense of medical education is high, a strategic approach to financial aid and service-based incentives can make your goal of becoming a physician achievable.