Attending college to earn a degree in a lucrative field may make it seem like your expenses should not be a huge issue. When you hear that people struggle with mental health conditions and overwhelming amounts of student loan debt, you may picture someone in a low earning field. For someone who is considering medical school, the thought that you will one day be a high earner can make taking on debt less intimidating than for those in other fields. While you are likely to be in a good position financially after you graduate, making smart decisions in all stages of your education will put you in the best position to succeed.
Research and Apply for Grants and Scholarships
There is no reason to expect that you will pay out of pocket for medical school, and there is no reason to feel that you need to borrow the full amount. Before you even think of student loans, take time to research grants and scholarships that you may qualify for. Your target school will put together a financial aid package for you, but you should do your research as well. There are other opportunities, particularly with scholarships, that you can find on your own and that will lower your total bill. You want to exhaust these opportunities before taking out loans. While it may seem like a good deal of work up front, this is money that doesn't need to be repaid.
Take Out Loans to Cover the Rest
Once you have lowered your schooling costs as much as possible through the aid that doesn't need to be repaid, you will know how much you need to borrow. Student loans generally have attractive terms, so you shouldn't shy away from borrowing money that you need. You know the education will be worth it, and you will be well-positioned to repay the debt. While you don't want to borrow more than you need, you do want to set yourself up for success.
Determine if You Benefit from Federal Loan Perks
There are several programs available for federal student loan borrowers. Student loan forgiveness is available for individuals who meet certain qualifications, such as working in the public sector. Income-based repayment ties the monthly amount due to your income. Both of these benefits can be great if you qualify for them, but they may not be options, depending on where your career is headed. These perks are the best part of federal student loans, as the interest rate is often higher than what you qualify for with private loans.
Refinance What is Left
If you would not benefit from the perks associated with federal loans, it makes sense to refinance them. You can often beat the interest rate on your loans by refinancing, which can be used to lower your monthly payment, shorten the lifespan of your loan, or both. You give up the perks of federal loans when you refinance, but you can save a good deal of money. Most doctors are not going to be in a position to benefit from these perks, so refinancing your medical student loan debt makes sense.
