Medical Residency and Relocation Loans

By Mollie Allen Updated on February 8, 2021

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Medical Residency Loans

Once you’ve graduated medical school, you will need to complete your internship and residency. Chances are, you may be low on funds to cover expenses like relocation, housing, and other living expenses. There are no federal student loans available to cover expenses related to medical residency and relocation, however, many private lenders offer medical residency and relocation loans specifically for this purpose.

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.

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Best for Private Loans

Interest Rates

Variable Rates: 1.13% APR - 11.23% APR¹

Fixed Rates: 3.50% APR - 12.60% APR¹

Repayment Terms

N/A

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• Variable Rates: 1.13% APR - 11.23% APR. Fixed Rates: 3.50% APR - 12.60% APR. Lowest rates shown include the auto debit discount.¹
• Choose from multiple repayment options, including no payments while in school¹
• No origination fee or prepayment penalty²
• Cover up to 100% of your school-certified college expenses like tuition, fees, books, housing, meals, travel, and even a laptop for the entire school year³
• The only undergraduate student loan that offers 4 months of Chegg® study help ⁴

This loan is for undergraduate students at participating degree-granting schools. Students who are not U.S. citizens or U.S. permanent residents must reside in the U.S., attend a participating school in the U.S., apply with a creditworthy cosigner (who must be a U.S. citizen or U.S. permanent resident) and provide an unexpired government-issued photo ID to verify their identity. Applications are subject to a requested minimum loan amount of $1,000. Current credit and other eligibility criteria apply.

¹Interest is charged starting when funds are sent to the school. With the Fixed and Deferred Repayment Options, the interest rate is higher than with the Interest Repayment Option and Unpaid Interest is added to the loan’s Current Principal at the end of the grace/separation period. Payments may be required during the grace/separation period depending on the repayment option selected. Variable rates may increase over the life of the loan. Advertised variable rates reflect the starting range of rates and may vary outside of that range over the life of the loan. Advertised APRs assume a $10,000 loan to a borrower who attends school for 4 years and has no prior Sallie Mae loans. The borrower or cosigner must enroll in auto debit through Sallie Mae to receive a 0.25 percentage point interest rate reduction benefit. This benefit applies only during active repayment for as long as the Current Amount Due or Designated Amount is successfully withdrawn from the authorized bank account each month. It may be suspended during forbearance or deferment, if available for the loan.

²Although we do not charge a penalty or fee if you prepay your loan, any prepayment will be applied as outlined in your promissory note-first to Unpaid Fees and costs, then to Unpaid Interest, and then to Current Principal.

³Loan amount cannot exceed the cost of attendance less financial aid received as certified by the school. Sallie Mae reserves the right to approve a lower loan amount than the school-certified amount. Miscellaneous personal expenses (such as a laptop) may be included in the cost of attendance for students enrolled at least half time.

⁴This promotional benefit is provided at no cost to borrowers with undergraduate or parent loans with a first disbursement between May 1, 2021 and April 30, 2022. Borrowers are not eligible to activate the benefit until July 1, 2021. Borrowers who reside in, attend school in, or borrow for a student attending school in Maine are not eligible for this benefit. Chegg Study® offers expert Q&A where students can submit up to 20 questions per month. No cash value. Terms and Conditions apply. Please visit http://www.chegg.com/legal/smtermsandconditions for complete details. This offer expires one year after issuance.

Information advertised valid as of 11/25/2021

SALLIE MAE RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS, SERVICES, AND BENEFITS AT ANY TIME WITHOUT NOTICE. CHECK SALLIEMAE.COM FOR THE MOST UP-TO-DATE PRODUCT INFORMATION.

Sallie Mae, the Sallie Mae logo, and other Sallie Mae names and logos are service marks or registered service marks of Sallie Mae Bank. All other names and logos used are the trademarks or service marks of their respective owners.

Sallie Mae loans are made by Sallie Mae Bank.

Edvisors is not the creditor for these loans and is compensated by Sallie Mae for the referral of Sallie Mae loan customers.

© 2021 Sallie Mae Bank. All rights reserved. SLM Corporation and its subsidiaries, including Sallie Mae Bank are not sponsored by or agencies of the United States of America.

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Interest Rates

Variable rates as low as: 0.94% APR¹

Fixed rates as low as: 2.94% APR¹

Repayment Terms

5, 8, 10 or 15 years²

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• Competitive fixed and variable APRs starting at 0.94%¹
• Multiple repayment options including: full principal and interest, interest-only, deferred, and flat payment
• Flexible payment terms ranging from 5, 8, 10, and 15 years²
• Coverage up to 100% of your school-certified cost of attendance ($1,000 minimum)³
• No origination, application and processing fees, no fees for early repayment
• Apply online in 3 minutes and get an instant credit decision

College Ave Student Loans products are made available through either Firstrust 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.

¹Rates shown are for the College Ave Undergraduate Loan product and include autopay discount. The 0.25% auto-pay interest rate reduction applies as long as a valid bank account is designated for required monthly payments. Variable rates may increase after consummation.

²This informational repayment example uses typical loan terms for a freshman borrower who selects the Deferred Repayment Option with a 10-year repayment term, has a $10,000 loan that is disbursed in one disbursement and a 8.35% fixed Annual Percentage Rate (“APR”): 120 monthly payments of $179.18 while in the repayment period, for a total amount of payments of $21,501.54. Loans will never have a full principal and interest monthly payment of less than $50. Your actual rates and repayment terms may vary.

³As certified by your school and less any other financial aid you might receive. Minimum $1,000.

Information advertised valid as of 11/24/2021. Variable interest rates may increase after consummation. Approved interest rate will depend on the creditworthiness of the applicant(s), lowest advertised rates only available to the most creditworthy applicants and require selection of full principal and interest payments with the shortest available loan term.

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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