Residency and Relocation Loans – Fourth Year Students

Fourth year students may find it necessary to borrow additional loans for residency and relocation expenses.  Residency and Relocation loans are available to fourth year medical students to borrow during their final year and up to 12 months after graduating; Residency-only loans are available to borrow after graduation only. Both of these loans are consumer loans that PNWU doesn’t have to sign off on; it’s strictly between the student borrower and the lender.

Below is a list of some loans available:

Additional Resources to Help You Evaluate Your Options

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.

If you are still enrolled in your fourth year at PNWU and find that your budget exceeds the estimated cost of attendance, please contact the financial aid office to discuss a budget revision.

How much should I borrow in medical residency relocation funds?

Depending on the loan, 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.