Paying for Medical School
Find out about bursaries, student loans and lines of credit.
How Do I Pay for Medical School?
Paying for medical school doesn’t have to be stressful. MD Financial Management is here to help you. We can show you how to navigate the world of bursaries, student loans and lines of credit.
Most importantly, we can help you understand how the financing behind each option works. When it comes to interest rates, amortization periods (the time it takes to pay off a loan) and options for interest relief, we have you covered.
Line of Credit
The Medical Student and Resident Line of Credit1,2
At MD, our experience has shown us that some students simply run out of credit by their third or fourth year because some banks give large credit limits up front without proper financial advice. Other students borrow too much and end up with huge debts they carry through to practice. We never recommend over-borrowing.
The Medical Student and Resident Line of Credit is offered through National Bank. Your MD Advisor will help you map out a realistic budget for all your expenses and then help you get the funds you need in flexible annual increments. So, rest assured that you will get help developing a plan to prevent over-borrowing.
National Bank lines of credit don’t have account handling fees while you are a medical student or resident. You may also defer payment until 12 months after you complete residency or choose to pay some or all of the interest at any time, subject to National Bank approval3. Interest is capitalized so you do not have to worry about forgetting monthly payments and damaging your credit record.
Managing a Student Line of Credit
How To Avoid Over-Borrowing
The Medical Student and Resident Line of Credit, offered through National Bank, is the only such service catering exclusively to trainee physicians in Canada. You can borrow up to $275,000 by the end of residency in flexible annual increments. And MD ensures that students and residents are well equipped to manage this line of credit by providing a clear and strategic framework to plan, manage and monitor your finances.
As with any type of debt, effective management is crucial. A heavy debt load and bad credit record can affect everything from a physician’s future job opportunities to the ability to acquire, establish or incorporate a medical practice.
This line of credit has been structured to help students and residents avoid many of these potential pitfalls. We never recommend over-borrowing. Above all, with the Medical Student and Resident Line of Credit, you can set limits on your annual increments to allow for a steady drawdown of funds.
MD carries out an extensive cash-flow analysis with students to prepare both a monthly and an annual budget. This process is repeated each year and covers every aspect of a student’s spending:
- education costs, including fees, study tools and resources
- all expenses related to the medical profession, including training, national and provincial membership fees and dues, etc.
- all living expenses, including housing, food, entertainment and miscellaneous items
MD MedEd CounselTM is a team of MD Advisors and Early Career Specialists dedicated to serving medical students and residents through the schooling and training years to help you manage your finances. We can help you develop your financial plan and achieve your goals.
Learn more about the Medical Student and Resident Line of Credit
Get Started—Join the CMA
To take advantage of MD Financial Management, you must be a member of the Canadian Medical Association. Joining is easy. You will also automatically enjoy other benefits, including:
- free financial advice
- access to low and no-fee banking, credit card and lines of credit services
- life insurance available through some Provincial and Territorial Medical Associations
- access to clinical resources
- free online textbooks
- CMA librarians at your service
- free subscription to the Canadian Medical Association Journal
Contact MD Financial Management
As a CMA member, you get access to an MD Advisor. Your advisor can build you a financial plan that will support you through medical school, residency and practice. Email MD Financial Management or call 1 866 243-9505.