PRE-MED HANDBOOK

V. Financing a Medical Education

The cost of a medical education has dramatically increased since the mid-1970’s, making it increasingly important that pre-medical students carefully consider how they will pay medical school tuition and fees, books and other educational expenses plus living costs. The rapidly escalating costs are due both to large increases in tuition at most medical schools and to the general increase in cost of living that has pushed up costs for everyone. At private medical schools the average yearly cost for tuition and fees was approximately $31,000 for the 2002 entering class. At public schools average tuition costs were $14,577 for residents of the state and $30,924 for non-residents. Other living expenses will vary widely depending on the particular city and lifestyle, marital status, etc., but $10,000 or more is common for single students. Married students with children find living costs particularly difficult to meet with perhaps only a spouse’s income and much of it absorbed in child care costs. Most medical students find it impossible to work part-time while in medical school. Some of the programs used to finance educational costs for medical students through the 1980’s have been cut in the past few years even as tuition and living costs have continued to rise.

Medical schools recognize that most students will not be able to pay for their medical education completely from family financial resources. Every medical school has a Student Financial Aid Office that will assist accepted students to arrange a financial aid package if such help is needed, and they are responsible for coordinating all sources of financial assistance for all enrolled students. The vast majority of students currently enrolled in US medical schools receive some form of financial aid, most of it in the form of loans. The actual financial aid package may consist of various types of aid from several different sources. This financial aid process is complex because of the different sources from which aid may be obtained and the differing requirements and application procedures for each source. It is essential that students who will require financial aid contact the financial aid officer at the medical schools to which they have applied and file the necessary forms well before any deadline. Aid is not awarded until a student has been accepted for admission, but it is not necessary or desirable to wait until after an acceptance is received to apply. An application for financial aid should be filed with the Student Financial Aid Office in January or early February at most medical schools. Students applying in April may find that most of the less expensive loan funds are committed.

Many students prefer to finance their medical education from a service commitment program, in which they commit to service time in payment for school costs. South Carolina Area Health Education Consortium’s Office of Recruitment and Retention Programs offers several incentive, loan repayment, and scholarship programs. For more information call 803-771-2810.

The Armed Forces Health Professions Scholarships are also available, but highly competitive. Students accepted into these programs are commissioned as second lieutenants or ensigns in the inactive reserve of the US Air Force, the US Army, or the US Navy. The scholarship pays all tuition, fees and books, plus a living allowance. This stipend is taxable; fees and books are not. There is a substantial service commitment in return for financial assistance. For more information, contact the health care recruiters of the various armed forces.

National Health Service Corps Scholarships, a service commitment program, was utilized by many students during the 1970s and early 1980s, but this program has been drastically reduced. One or two scholarships are now being awarded each year at most medical schools and these go to students with exceptional financial need. There is more information about this program in the MSAR.

Most private medical schools have scholarships, fellowships, and grants from their endowments or from special funds donated to the school by alumni, friends, private companies and philanthropies that are available for students accepted to enter their program. Check with the individual schools to which you plan to apply for information about scholarships.

Loans are the primary means of supplementing family and student contributions for most medical students. Many medical schools have institutional funds that are loaned on a revolving basis (i.e., funds are replenished as old loans are repaid).

For more loan information, please refer to the MSAR. The most recent MSAR should be consulted as a starting place for information on financial aid in medical school and the AAMC booklet "Financial Planning and Management Manual for US Medical Students" is an excellent resource. However, the student financial aid office at the medical school at which you have been accepted is the source for the latest information and will in most cases be of the greatest assistance. The financial aid office has the responsibility for compiling a package that will assist students accepted at their institution to pay for their medical education.

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