When federal loans don’t cover medical school

Getting into medical school doesn’t mean the full cost is covered. RMR’s free financial-aid tool helps you work out what’s missing and compare your next steps. No account needed.

What changed for medical students

The 2025 law commonly called the One Big Beautiful Bill Act changed federal borrowing starting July 1, 2026. For medical students subject to the new rules, Direct Unsubsidized Loans are capped at $50,000 per year, with a $200,000 aggregate limit across graduate and professional subsidized and unsubsidized loans. Prior borrowing can reduce what remains; a separate $257,500 lifetime federal student-loan cap also includes undergraduate loans.

Grad PLUS is no longer available under the new rules. Previously, eligible students could use it to borrow up to their school’s cost of attendance, minus other aid. See Federal Student Aid’s rules.

Continuing students may qualify for an exception if they were enrolled in the same program on June 30, 2026, and received a Direct Loan for it before July 1. It generally lasts for the shorter of three academic years or the remaining expected time to finish. Ask your school to confirm your eligibility.

The problem: school can cost more than the limit

Tuition is only part of the bill. Fees, housing, food and other living costs still need funding. When your costs exceed federal loans and other aid, losing access to Grad PLUS leaves an amount you must cover another way.

A hypothetical year: $80,000 in school and living costs, minus $50,000 in federal loans and $10,000 in scholarships, leaves $20,000 to fund before loan fees. That is an example, not a typical school cost or an aid offer.

Private loans may fill part of that gap, but approval is not guaranteed and they do not carry federal repayment or forgiveness benefits. That makes it especially important to check school aid and scholarships before comparing lenders. Compare federal and private loans.

First, find the amount you actually need

Start with your school’s cost of attendance for one academic year. Subtract grants, scholarships, the resources you plan to contribute, and the net federal funds in your aid offer. RMR’s calculator shows the remaining amount without assuming you qualify for a particular loan.

A remaining gap is a question to explore. Ask about institutional aid and additional scholarships, and revisit the expenses within your control. The CFPB recommends considering federal aid and other options before private borrowing. Read its guide to private student loans.

Where Juno fits

Juno organizes groups of borrowers and negotiates with participating lenders. It offers access to student-loan and refinancing options; lenders decide whether you qualify. Joining is free, and an offer is yours to evaluate. See Juno’s eligibility information.

Our link takes you to Juno to explore its options. RMR does not collect your loan application or send your calculator entries. Compare any offer with alternatives, including its annual percentage rate, repayment term, fees, cosigner requirements and payment arrangements during residency.

For residents: protect the options you already have

Refinancing federal loans privately permanently gives up federal income-driven repayment and forgiveness benefits, including PSLF. A lower interest rate alone cannot tell you whether that tradeoff is worthwhile. Review the CFPB’s refinancing guidance.

Our repayment comparison shows the difference between monthly payments and total repayment. Try a longer term and you can see why a smaller monthly bill may still cost more overall. The calculation excludes federal repayment plans and forgiveness; use Federal Student Aid’s Loan Simulator to explore those separately.

Our referral relationship, plainly stated

RMR is a salaryDr company. We may earn a commission when you take out a loan through our Juno referral link. That is a commercial relationship, and you should know about it before you click.

Juno separately receives fees from participating lenders. Its disclosure explains how it makes money. We do not promise an exclusive RMR rate, the lowest rate, loan approval or a particular amount of savings. You can use our planning tools whether or not you use Juno.

Our aim is straightforward: make it easier to understand the decision, ask better questions, and choose an option that fits your own circumstances.