You did it. You've been admitted, or maybe you're already settling into your first semester. Now comes a question almost every future clinician faces: how do you pay for it?

For most of us, the answer includes graduate student loans. Loans can be a smart investment in a meaningful healthcare career. But how you borrow matters just as much as whether you borrow.

This guide walks you through a practical framework for borrowing for graduate school: how to borrow only what you need, understand repayment before you sign, and compare federal and private options with confidence.

Why Borrowing for Graduate School Looks Different This Year

If you've heard friends or family talk about student loans, their advice may already be out of date. The One Big Beautiful Bill Act (OBBB), passed in July 2025, changed federal student loans in major ways. Many of those changes took effect July 1, 2026.

Here's what's new for most students who borrowed their first federal loan on or after that date:

  • Grad PLUS loans are no longer available to new borrowers.
  • Graduate Unsubsidized Direct Loans are capped at $20,500 per two-semester loan period, with a $100,000 lifetime limit.
  • A new $257,500 lifetime maximum applies to all federal student loans combined, including any undergraduate loans.
  • Only two repayment plans are available for new loans: a Tiered Standard plan and the new Repayment Assistance Plan (RAP).

If you borrowed a Direct loan before July 1, 2026, different rules may apply to you. You may still qualify for Grad PLUS loans for a limited time.

The Mass General Brigham University Financial Aid Office keeps an up-to-date summary on its Federal Financial Aid Updates page. It's worth bookmarking, since federal guidance is still evolving.

Step 1: Borrow Only What You Need

It's tempting to accept every dollar in your financial aid offer. After all, it's there. But every dollar you borrow is a dollar you'll repay, plus interest.

Start by building a realistic budget. List your income sources, such as work, family support, or scholarships. Then list your fixed costs, like rent and tuition, and your variable costs, like groceries and transportation. Compare those totals against the University's tuition and fees.

Before you accept a loan, ask yourself:

  • Do I need the full amount I'm offered?
  • Can I cover some costs another way, like savings, part-time work, or grants?
  • What will this loan cost me over its lifetime?

A small change can add up. Borrowing even $2,000 less each year can mean thousands less in interest over time.

Tools That Can Help

You don't have to figure this out alone. The University offers free access to iGrad, a personal finance program that starts with a financial wellness checkup and tailors its content to you. You'll find more budgeting tips and resources on the Financial Aid & Billing page.

Step 2: Understand Repayment Before You Sign

Repayment might feel far away when you're focused on anatomy exams and clinical placements. But understanding it now helps you borrow with intention.

The Tiered Standard Plan

For federal student loans disbursed after July 1, 2026, the Tiered Standard plan sets your repayment term based on how much you originally borrowed:

  • Up to $24,999: 10 years
  • $25,000 to $49,999: 15 years
  • $50,000 to $99,999: 20 years
  • $100,000 or more: 25 years

A longer term means lower monthly payments, but you'll likely pay more interest overall.

The Repayment Assistance Plan (RAP)

RAP replaces earlier income-driven plans like SAVE, PAYE, and IBR. Under RAP, your payment is based on your income, typically between 1 and 10 percent. Repayment can last up to 30 years. RAP also qualifies for Public Service Loan Forgiveness (PSLF), which can matter a great deal if you plan to work for a nonprofit hospital or public health system.

You're not locked in, either. RAP borrowers can switch to a Tiered Standard plan later.

Connect Borrowing to Your Future Salary

Here's a helpful rule of thumb: try to keep your total student debt in line with your expected starting salary. Look up typical earnings for your profession on O*NET OnLine, a free federal database of occupational profiles. Then use the Repayment Calculator on StudentAid.gov to estimate what your monthly payments could look like.

Seeing real numbers now can take much of the mystery (and anxiety) out of repayment later.

Step 3: Compare Federal Student Loans and Private Loans

With new federal limits in place, some students will need to look beyond federal student loans to cover the full cost of attendance. Before you do, it helps to know how the two types compare.

Federal Student Loans: Start Here

Federal student loans are usually the best place to begin. They offer:

  • Fixed interest rates set by Congress
  • No credit check for Direct Unsubsidized Loans
  • Access to income-based repayment through RAP
  • Eligibility for PSLF and certain forgiveness programs
  • Options to pause payments during financial hardship

To be considered, you'll need to complete the FAFSA each year.

Private Loans: Fill the Gap Carefully

Private loans come from banks, credit unions, and other lenders. They can help cover what federal loans don't. But they work differently:

  • Rates may be fixed or variable, and they depend on your credit history
  • Many students need a cosigner to qualify or to get a lower rate
  • They don't qualify for federal repayment plans or PSLF
  • Hardship and deferment options vary by lender

If you're considering a private loan, shop around. Compare interest rates, fees, repayment terms, and cosigner release options. And talk with the Financial Aid Office first. They can help you understand how a private loan fits into your full financial picture.

It’s also strongly recommended that students apply with a cosigner. It’s encouraged that students and their cosigner check their credit in advance of applying. Students and cosigners are able access their weekly credit report from the three major credit bureaus at www.annualcreditreport.com.  

Step 4: Look for Ways to Reduce What You Borrow

Borrowing thoughtfully isn't only about choosing the right loan. It's also about reducing the amount you need.

Explore the University's scholarships, along with outside awards from professional associations in your field. Look into loan repayment assistance programs, which can help pay down debt after graduation, especially if you serve in high-need or underserved communities.

Many healthcare employers also offer tuition reimbursement or loan repayment benefits. It's worth asking about these as you plan your career.

You're Investing in a Career That Matters

Choosing a career in healthcare is a commitment to caring for others. Caring for your own financial health is part of that commitment too.

At Mass General Brigham University of Health Professions, our Financial Aid Office is here to help you build a plan that fits your goals, your budget, and your future. Have questions about your aid package or the new federal rules? Reach out to our team at financialaid [at] mghihp.edu (financialaid[at]mghihp[dot]edu).