AAMC Financial Aid and Medical Education Costs 2 — Questions and Answers
Question 1: What is the annual Grad PLUS loan limit for medical students?
- $20,500 per year
- $40,000 per year
- Up to the cost of attendance after other aid (Correct answer)
- A fixed $100,000 total lifetime limit
Correct answer: Up to the cost of attendance after other aid
Grad PLUS loans allow medical students to borrow up to the full cost of attendance minus any other financial aid received, with no fixed annual cap.
Question 2: What percentage of US medical students graduate with education debt?
- Around 30%
- Around 50%
- Around 70% (Correct answer)
- Around 90%
Correct answer: Around 70%
According to AAMC data, approximately 70% of US MD graduates carry education debt at graduation.
Question 3: What is an Income-Driven Repayment (IDR) plan?
- A plan that bases monthly payments on your annual income and family size (Correct answer)
- A plan that pays off loans in exactly 10 years
- A plan only for students with grants
- A plan that defers all payments during residency
Correct answer: A plan that bases monthly payments on your annual income and family size
Income-Driven Repayment plans set monthly federal loan payments as a percentage of discretionary income, which can reduce payments to manageable levels during residency.
Question 4: Which AAMC tool helps students estimate their medical school debt and future repayment obligations?
- MCAT Prep Tool
- MedLoans Organizer and Calculator (Correct answer)
- AMCAS Cost Estimator
- FIRST Budget Builder
Correct answer: MedLoans Organizer and Calculator
The AAMC MedLoans Organizer and Calculator helps medical students and residents organize their loans and project future repayment scenarios.
Question 5: How does the armed forces Health Professions Scholarship Program (HPSP) benefit medical students?
- It provides partial tuition reimbursement
- It pays full tuition, fees, and a monthly stipend in exchange for military service after graduation (Correct answer)
- It provides a loan forgiveness benefit after 20 years
- It offers free housing during medical school only
Correct answer: It pays full tuition, fees, and a monthly stipend in exchange for military service after graduation
The HPSP covers full tuition, fees, and provides a monthly stipend for medical students in exchange for active duty military service after graduation.
Question 6: What is the typical interest rate environment for Grad PLUS loans for medical students?
- Below 3%
- Fixed at 5–8% depending on the year (Correct answer)
- Variable, tied to prime rate
- Interest-free during school
Correct answer: Fixed at 5–8% depending on the year
Grad PLUS loan interest rates are fixed and set annually by Congress; recent rates have been in the 5–8% range depending on the disbursement year.
AAMC Financial Aid and Medical Education Costs 2
What is the annual Grad PLUS loan limit for medical students?