Personal Loans For Medical Students

What can I use a personal loan for?

Personal loans are a flexible loan product that has few spending restrictions. Before spending, it can help you comply with the agreement to review any spending restrictions. Medical students can find personal loans helpful for the following and much more. 

• Books 
• Deposits 
• Car repair financing
• Moving loans
• Traveling or studying abroad 

What is the difference between a personal loan and a student loan?

Personal loans and student loans are different, although a personal loan can be used by a student. Let’s compare and contrast the two for clarity. 

• Personal loan: Personal loans are a type of installment loan with few spending restrictions typically offered by banks, credit unions, and private sources. They can be funded as a lump sum and repaid in fixed installments with interest over a set period of time. In most cases, repayment begins shortly after the loan is approved - 30-45 days in most cases. Personal loans are unsecured meaning they don’t require a down payment or collateral. Instead they are based on the creditworthiness of the applicant. 
• Student loan: Student loans can be offered to students to cover tuition, housing, and other school-related expenses. The two main sources for personal loans are the federal government and private lenders. Student loans can offer students access to the money they need now with the ability to repay the loan after graduation or a set date. In addition, installments to repay a student loan can be based on factors such as income after graduation. They truly are designed to help students ensure they can get the education they need to live out their dreams. However, students may need more financial assistance than just student loans. 

How much can I borrow with a personal loan for medical school?

Personal loans can be offered up to $100,000, depending on credit score. Most lenders have minimum and maximum loan amounts they can offer. Just because a lender can offer loans for a certain amount, does not mean everyone is eligible. To determine how much you can borrow you can get pre-qualified. During the process of getting pre-qualified, you can submit personal information to the lender and include a requested loan amount. The lender can review the information to determine what they can offer you, including a loan amount, APR, and repayment period. Comparing pre-qualified offers is a realistic option for determining which loan offer makes the most sense, as well as helping you determine what you can afford to borrow. 

Can I get a personal loan for medical school if I have bad credit?

Credit score is often one of the requirements a lender uses to determine the creditworthiness of an applicant. While medical school is an impressive stamp on your professional record, it may not override a bad credit score. If you have bad credit you may have less options for personal loans and face a higher cost of borrowing. As you give your all to making it through medical school, you may have accumulated a fair share of debt. This debt may be bringing your score down. Reviewing your credit report can help you determine the weights that are bringing your score down. To access insights on how you can improve your score you can take advantage of credit monitoring apps and services. 

Boosting your credit score or applying for a loan with a co-signer with good credit can increase your chance of approval. 

Can I get a personal loan for medical school if I am in my residency?

Personal loans can help medical professionals at all stages of education and beyond. Medical students in residency are good candidates for personal loans as most residencies are paid. Therefore, medical students in residencies may be more qualified to meet the requirements to qualify for a personal loan. The wages earned by medical students in residency programs are usually less than those of doctors. A personal loan can help young professionals push through the hoops of residency as they carry out an unwavering commitment to becoming a licensed medical professional. 

What happens if I miss a payment on my personal loan for medical school?

If you fall behind on payments for a personal loan, the lender can send the account to a collections agency. Missed payments can take a toll on your credit report, especially if accounts end up with collections agencies and are left unpaid. If you’re struggling to keep up with payments, proactively reach out to the lender to see how they can help. Remember, the lender wants you to repay the loan so they may be willing to work with you, or at the least educate you about what to expect if you do not repay.