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Paying for Medical School

How do I pay for medical school?

Paying for medical school doesn’t have to be stressful. MD Financial Management and the MD MedEd Counsel™ are 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, repayment features 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 our relationship with 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’s medical student and resident line of credit doesn’t have account handling fee, and interest is capitalized so you do not have to worry about forgetting monthly payments and damaging your credit rating.

You may also defer interest and capital payments until 12 months after you complete residency or choose to pay some or all of your outstanding balance at any time, subject to National Bank approval3.

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 or 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 and residents 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

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:

  • financial planning
  • 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

Join the CMA today

Introducing MD MedEd CounselTM

A team of MD Advisors and Early Career Specialists dedicated exclusively to medical student and residents.

Find an MD Advisor or Early Career Specialist near you.

MD MedEd CounselTM services are provided by MD Management Limited, a CMA company.

1 Banking products and services are offered by National Bank of Canada through a relationship with MD Financial Management. Credit and lending products are subject to credit approval by National Bank of Canada.

2 The following medical students or residents are not eligible for this program: those studying part-time, attending a non-Canadian school, enrolled under the Canadian Defence Medical Officer Training Plan (MOTP), non-Canadian citizens or non-permanent residents. Medical students or residents belonging to one of the foregoing categories may be eligible for standard loans (with a qualified Canadian resident co-applicant). All loans are subject to credit approval by National Bank of Canada.

3 A statement of account is issued monthly. Account handling charge: $0.00/month. The annual interest rate for a Medical Student and Resident Line of Credit is the prime rate* (representing a rate of 2.70% as at July 17, 2015). The Line of credit bears interest as of the date it is used. The minimum monthly amount is limited to the monthly interest and the life insurance premium (if applicable) as long as limits are respected. Examples of credit charges calculated for a 30-day period at the rate in effect on July 17, 2015:

If average balance is:
Medical Student and Resident Line of Credit$500.00$3,000.00
Prime rate (2.70%)$1.13$6.75