The main federal loan program for students is the Stafford Loan program. The Stafford Loan offers subsidized and unsubsidized loans. For the subsidized Stafford Loan, the government pays the interest on your loan while you are in school. With an unsubsidized Stafford Loan, you are responsible for paying the interest on the loan, though you can defer payment until after graduation. Stafford Loan limits vary based on your dependency status and college level. The minimum base limit of the Stafford Loan for medical school students is $8,500 per year.
The Perkins Loan is a financial aid option for medical school students with extreme financial need. The Perkins Loan is a campus-based loan offered by your college through a limited amount of funds provided by the federal government. The Perkins Loan is a better option than the Stafford Loan because it has lower interest rates and the federal government pays your interest rates while you are in school. The Perkins Loan has an annual limit of $8,000 and a lifetime limit of $60,000.
The Graduate PLUS Loan is a loan option for dependent students and their parents to consider. The Graduate PLUS Loan is a credit-based loan in which your parents can take out a federal loan to cover educational costs. With the Graduate PLUS Loan, parents are completely responsible for paying back the loan. There is no limit to the Graduate PLUS Loan; although your parents cannot take out more than the annual cost of your education. Parents can apply for this loan by submitting the Free Application for Federal Student Aid, or FAFSA, and signing a master promissory note.