As you explore your options to help you pay for your stint in a medical residency, you may quickly realize that traditional education loans won't be much help to you.
While completing a residency is required to become a medical doctor, it's not technically considered an education expense. So fourth-year medical students may need to look for medical residency and relocation loans that are designed to help fund this chapter of their training.
The good news is that you’ll find many options for medical residency and relocation loans. But where should you start your search to ensure you get a good deal? In the article below, we take a closer look.
What Is A Medical Residency And Relocation Loan?
First, let’s define what medical residency and relocation loans are. This is a unique type of private student loan that helps you cover the costs of becoming a doctor beyond your classroom expenses.
You can use the funds you obtain through a medical residency and relocation loan to cover the following costs:
- Residency application fees
- Interview travel expenses
- Moving and shipping costs
- Internship expenses
- Textbooks and study guides
- Board exam review courses and fees
Most student loan providers will not allow you to borrow money beyond the cost of your traditional schooling. However, it is easy to see how the costs beyond the classroom can add up quickly on your path to becoming a doctor.
Suppose you are looking at the upcoming expenses you face as you pursue a residency and wonder how on earth you will pay for it all. In that case, a medical residency and relocation loan could be the answer. After all, most medical students don’t have thousands of dollars to cover travel and moving expenses as they start the next chapter.
Instead of letting your minimal resources hold you back at this critical juncture in your career, a medical residency and relocation loan can help you move forward confidently.
Note: Residency loans are different than medical school student loans.
Where To Find Medical Residency And Relocation Loans
Convinced that medical residency and relocation loans are worth looking into? Here are the top options to help you find a competitive loan that meets your needs.
Sallie Mae Medical Residency And Relocation Loans
Sallie Mae is a recognizable name in the private student loan space. So it's not surprising that they would offer medical residency and relocation loans.
Through Sallie Mae, you can borrow up to $30,000. The funds can be used to cover many expenses related to your medical residency, including moving costs, travel costs, and board examination fees.
These loans can be used for three different types of residencies - medical, podiatry, and veterinary. With that, many students can find the resources they need through this loan.
Sallie Mae offers competitive rates. If you go with this loan, you’ll enjoy a deferred repayment. You won’t have to make any payments while you are in school if you are enrolled at least half time. Plus, there is a grace period of three years after you graduate or nine months if you leave school or drop into a less than half-time status.
Read our full Sallie Mae review here.
Sallie Mae® Medical Residency and Relocation Loan | |
|---|---|
Max Loan Amount | $30,000 |
Origination Fee | 0% |
Fixed APR | 6.33% - 11.59% |
Variable APR | 6.33% - 11.59% |
Should You Apply?
As you approach the final stretch of your medical education, you may see expenses looming on the horizon. If you can't cover those expenses out-of-pocket, you may have to consider medical residency and relocation loans as an option.
Of course, you should do everything in your power to avoid taking on more debt. But it might be unavoidable in some cases.
If you do decide to apply for a residency and relocation loan, don’t ask for more than you really need. Take some time to tally up the projected costs of your residency and relocation before deciding on a loan amount. You won’t want to be stuck taking out a larger loan than you need to.
Final Thoughts
Medical residency and relocation loans can help medical school grads cover the costs of an important point in their educational journeys. If you decide that taking out one of these loans is right for you, take the time to shop around for the best rates and terms before signing on the dotted line.
Then, once you have the loans, don't forget to shop around at least once a year and see if you can refinance your student loans for a better interest rate.
Common Questions About Medical Residency Student Loans
Can you take out loans for residency?
Yes, you can take out loans to help cover the costs associated with residency. These residency and relocation loans are designed to help you pay for moving costs, enrollment costs, and exam fees.
Can medical residents get student loans?
Medical residents cannot get student loans, but they can take out medical residency loans, which are a type of personal loan.
Do doctors pay their student loans in residency?
Depending on the loan type, it can make sense to pay your student loan during residency, or at least be enrolled in an income-driven repayment plan to start accumulating Public Service Loan Forgiveness qualifying payments.
Editor: Clint Proctor Reviewed by: Chris Muller
Robert Farrington is the founder of The College Investor and is widely recognized as one of the nation’s leading voices on student loan debt and saving for college. He holds an MBA from UC San Diego Rady School of Management and has spent over 15 years researching, writing, and advising on student loans, 529 plans, financial aid programs, and saving and investing for young professionals.
Robert has been featured in the The New York Times, The Wall Street Journal, The Washington Post, NBC News, and Forbes, where he has been a regular personal finance contributor for over a decade. His work combines both professional expertise and personal experience – he successfully navigated his own student loan repayment journey and has helped thousands of readers do the same.
He is committed to making the intersection of personal finance and education transparent and accessible. You can learn more about Robert on the About Page or on his personal site RobertFarrington.com.