Medical Residency Loans
After completing medical school, the next step is starting your internship and residency. This phase often brings financial challenges, such as relocation, housing, and other living expenses. Since federal student loans don’t cover these costs, private lenders provide medical residency and relocation loans tailored to meet these needs.
What Is a Residency and Relocation Loan?
According to the Association of American Medical Colleges, students spend between $1,000 and $11,580 on residency interview costs alone, with a median spend of $4,000.
A residency and relocation loan can help cover these costs in addition to costs associated with exam prep, relocating, and living expenses such as housing, transportation, groceries and more.
Best Private Student Loans for Medical School
Edvisors (Edvisors Network, Inc.
) provides independent advertising-supported platforms for consumers to search compare and apply for private student loans.
- Competitive APRs starting at 3.24%1
- Coverage up to 100% of your school-certified cost of attendance ($1,000 minimum) 2
- Apply online in 3 minutes and get an instant credit decision
College Ave's student loan products are made available through Firstrust Bank, member FDIC, First Citizens Community Bank, member FDIC, or M.Y. Safra Bank, FSB, member FDIC. All loans are subject to individual approval and adherence to underwriting guidelines. Program restrictions, other terms, and conditions apply.
1All rates include the auto-pay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. If a payment is returned, you will lose this benefit. Variable rates may increase after consummation.
2As certified by your school and less any other financial aid you might receive. Minimum $1,000.
3This informational repayment example uses typical loan terms for a freshman borrower who selects the Flat Repayment Option with an 8-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 7.78% fixed Annual Percentage Rate (“APR”): 54 monthly payments of $25 while in school, followed by 96 monthly payments of $176.21 while in the repayment period, for a total amount of payments of $18,266.38. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.
Information advertised valid as of 05/29/2025. Variable interest rates may increase after consummation. Approved interest rate will depend on creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of the Flat Repayment Option with the shortest available loan term.
- Get your rate in about 2 minutes4
- 4x more likely to be approved by applying with a qualified cosigner5
- No Application or Origination Fees
1Student Loan Rate Disclosure: Variable interest rates range from 4.99% - 15.60% (4.99% - 15.61% APR). Fixed interest rates range from 3.99% - 15.60% (3.99% - 15.61% APR).
2Automatic Payment Discount: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
3Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower or their co-signer (if applicable) has a qualifying account in existence with us at the time the borrower and their co-signer (if applicable) have submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: personal checking, personal savings, personal credit card or previous student loans owned by Citizens Bank, N.A. Please note, our checking and savings account options are only available in the following states: CT, DC, DE, FL, MA, MD, MI, NH, NJ, NY, OH, PA, RI, VA, and VT and some products may have an associated cost. This discount will be reflected in the interest rate disclosed in the Loan Approval Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
4Get My Rate: Selecting “Get My Rate” only requires a "soft credit pull" which does not affect your credit score. Submitting a full application will result in an inquiry on your credit report.
5Citizens Undergraduate Booked Loans from 10/1/2023 through 9/30/2024 were 4 times more likely to be approved with a qualified cosigner.
6Multi-Year Approval: Funds available for future use are subject to a soft credit inquiry at time of your next request to verify continued eligibility. After we make the initial Loan to you, you must continue to meet eligibility criteria to obtain additional funds under the Multi-Year Approval feature. Terms and conditions are outlined in the promissory note. Multi-Year Approval borrowers have a 99% approval rate on future requests for additional funds. The additional funds approval rate is based on the percentage of approved Multi-Year borrowers from Citizens between October 1, 2023 and October 1, 2024. The approval rate represents only borrowers who had previously accepted the Multi-Year Approval offer. Please Note: International students are not eligible for Multi-Year Approval.
Information advertised valid as of 05/01/25. Rates and offer subject to change. All accounts, loans and services subject to individual approval.
© 2025 Citizens Financial Group, Inc. All rights reserved. Citizens is a brand name of Citizens Bank, N.A. Member FDIC
Best Residency Relocation Loan
Each lender has their own terms and conditions when it comes to their residency and relocation loans, but here are some common features:
- Borrow up to $30,000, depending on the lender
- Cover expenses related to medical residency, relocation, board exam prep, transportation, living expenses, groceries and more.
- Up to a 15 or 20-year repayment term, with no prepayment penalties
- Payments may be deferred for up to 7 years during the residency
- Cosigner release option may be available after 12 to 48 consecutive, on-time payments
- Fixed or variable interest rates are available
Sallie Mae® Medical Residency and Relocation Loan
Sallie Mae allows you to borrow up to $30,000 with their Medical Residency and Relocation Loan. These funds can be used to help you pay for your board exam fees, transportation, and living expenses. Fixed and variable rate options are available, and repayment terms can be flexible. If needed, you do have the option to apply with a cosigner.
Eligibility Requirements for Medical Residency Relocation Loans
Medical residency and relocation loans are available to medical students who meet the following criteria:
- In their final year of medical school
- Have graduated within the last 12 months
Since residency and relocation loans are private student loans, they have the same eligibility requirements as most other private student loans:
- You must be a U.S. citizen or permanent resident, or a creditworthy cosigner who is a U.S. citizen or permanent resident will be required.
- If you are the sole applicant, you must have reached the age of majority in your state of residence. If you do not meet the age of majority requirements in your state, a creditworthy cosigner will be required.
- You must satisfy the credit criteria as required by your potential lender. If you cannot meet the credit criteria, you will need a creditworthy cosigner.
Medical Residency and Relocation Loan FAQ
Can a federal student loan be used to help cover residency or relocation costs?
Unfortunately, there are no federal student loan options available to cover residency or relocation costs, meaning you may not borrow any new federal loans to cover these expenses. However, if you have any unused federal student loan funds you can use those funds towards residency relocation.
How much should I borrow in medical residency relocation funds?
You may be able to borrow up to $30,000. But you may not need this much. Anytime you are using loan funds to help you fund your education, you should borrow only what you need. You don’t want to end up with an unmanageable amount of debt.
Before you borrow funds, make sure you create a budget and outline how you will manage the funds you receive. Many lenders don’t charge prepayment penalties, but make sure you double-check the terms and conditions of your loans.
When should I apply for a residency loan?
You can apply for a residency loan within your last year of medical school, or within 12 months of graduation. You should apply as soon as you realize you will need additional help to cover the costs.
What is my interest rate going to be?
Your interest rate will be determined by your creditworthiness; either yours alone or with a cosigner (if applicable). Once you have selected a lender, they can give you additional insights on your projected rates.
The interest rate may be fixed or variable. A fixed rate remains unchanged for the life of the loan. A variable rate changes periodically, typically on a monthly or quarterly basis.
When a variable rate changes, your monthly payments may increase or decrease.
Can I borrow a residency location loan with bad credit?
If you can find a strong creditworthy cosigner, you may still be eligible to borrow a residency relocation loan. If you need a cosigner to qualify, you may want to find a medical residency relocation loan which has a cosigner release option.
What is the difference between a residency relocation loan and a personal loan?
While these are both unsecured debts, they are a bit different in their purpose.
- Medical residency loans are specifically for students in their residency with features and eligibility requirements that are similar to medical school loans.
- Personal loans can be borrowed for a variety of reasons, and they don’t offer the same type of deferment opportunities as medical residency loans.
Medical School Loan Repayment During Residency
Your medical school loans will enter repayment six months after your graduation from medical school. You may have an option to postpone making payments during your residency, but these loans will continue to accrue interest during that time. We recommend making payments during residency to prevent interest from accumulating. If you have federal student loans, you may be eligible for payment postponement using a forbearance. Contact your loan servicer to determine your options.
Medical School Loan Refinance
Another option is medical school loan refinance. Some student loan refinance lenders offer the ability to refinance your student loans while you’re still in residency. Student loan refinancing may make your loans more manageable. Refinancing allows you to potentially achieve the following:
- Reduced monthly payments
- Lower interest rate
- Extended repayment terms
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