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More Americans are choosing to leave the hubbub of big cities in order to move to smaller towns, according to multiple studies. Reasons include a desire for a less stressful environment, more affordable housing and lower cost of living, and a shorter commute. Currently, as of early 2025, the Southeast is a hot area to move to, and people are flocking away from pricey urban hubs like New York City and the San Jose area.

Thousands of smaller U.S. cities offer all of the above and more. But which one to choose? Below you’ll find 12 prime candidates, drawn from public data and our own personal favorites.

What Is Considered a Small City?

According to the U.S. Census Bureau, “urban” areas have at least 5,000 people. A midsize city has a population of 100,000 to 250,000, and a large city counts more than 250,000 inhabitants.

Our list includes small cities with a population of 5,000 to 100,000 residents.

Why People Choose to Live in a Small City

People find life in a small city appealing for a variety of reasons. If you’re coming from a bigger city, a less populated one often means reduced traffic, noise, crowds, and pollution. You may see lower housing costs, or find you get more space and amenities for your buck. The overall cost of living also tends to be more affordable, given lower prices for groceries, gas, utilities, and dining out. Lower sales and property taxes can also be a factor.

Smaller cities can be much easier to navigate. For families, the public school system may rank higher and be less competitive (no more stressing out trying to get your kid into pre-K). Smaller populations may also result in tight communities, where residents feel safe and welcome.

Living in a smaller city can be more manageable for older adults especially, providing a peaceful, happy place to retire.

Some retirees for whom taxes are a prime concern gravitate to small towns in states with lower taxes on retirement savings.

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Pros and Cons of Living in a Small City vs a Big City

If you’re not sure whether a small city is better for you, here are some pros and cons of each. Note that some factors — such as large populations of young singles or a slower pace — may be pros or cons, depending on your demographic.

Pros of a Small City	Cons of a Small City
Lower cost of living	Fewer employment opportunities
Slower pace	Limited entertainment and culture
Less crowded	Too sparsely populated
More indoor and outdoor space	Less access to medical care and major airports
Reduced crime	Less diversity
Larger populations of families and retirees	More college students, recent grads, and young singles
Quieter and cleaner, with less pollution	Little to no public transportation

Traditionally, many people migrate to big cities to establish themselves professionally, since small cities tend to provide fewer employment opportunities. That may be changing due to the rise of remote work. Consider the following pros and cons of living in a big city.

Pros of a Big City	Cons of a Big City
Personal autos may be optional	Public transportation can be unreliable or unpleasant
Access to arts, culture, entertainment, and sporting events	Higher local taxes and cost of living
Larger job market	More competitive employment standards
More diverse population	Potentially overcrowded
More social opportunities for singles, younger people, and couples without children	Higher crime rate
Access to medical care and major airports	Streets can be dirty, with greater noise and pollution

5 Tips for Living in a Small City

Whether you’re moving from a rural area, the suburbs, or a large U.S. city, a small city can take some getting used to. Here are five suggestions on how to find your way as the new kid in town:

•   Get to know the locals. Dive in, and meet people, whether at the local cafe or a newcomer’s event. Chat up your neighbors. Locals know the best places to go, from basic services to restaurants and cultural venues. Plus, they can tell you how to get there, including shortcuts, streets to stroll, and areas to avoid. And of course, meeting people helps you feel a part of the community.

•   Allow time for adjustment. A small city may not have all the amenities you had in your previous hometown. But given time, you’ll likely find that for every perk you give up, you’ll discover at least one new advantage.

•   Seek out like-minded people. Maybe you’ll immediately find your crowd. But even in cities where the bulk of the populace doesn’t share your political or social perspectives, you can still find people who do. It might just take a little effort. Volunteering, taking a class, or hanging out in a particular neighborhood can foster new friendships.

•   Rejigger your budget. If you’re paying less than you used to for housing and essentials, don’t fritter away that extra cash. Download a good spending app and channel that disposable income toward emergency savings, retirement, or other financial goals.

•   Seek out hidden treasures. Smaller cities tend to have more mom-and-pops and independent businesses, which can be a nice change from national chains. And small cities are often rich in green spaces, hiking and biking trails, and local festivals and historical societies. Make time to wander and discover all that your new home has to offer.

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12 Best Small Cities to Live in the USA

To compile our list, we reviewed numerous roundups of the best small cities to live in the U.S., along with government statistics and personal anecdotes. Read on for our recommendations.

1. Apex, NC

•   Population: 72,213

•   Median household income: $151,386

•   Median home value: $608,000

•   Average monthly rent: $2,200

•   Mean travel time to work: 24 minutes

•   Cost of living: 4% higher than the national average

•   Crime statistics: 1 in 1,921 chance of being a victim of a violent crime

Apex, N.C., is consistently rated a “best place to live,” thanks to its small-town feel, natural beauty, and school system that families appreciate. The downtown area is a historic district, and the 1867 train station is a designated local landmark. It’s had significant growth recently with the hot job market in the Triangle area of North Carolina, but residents say it retains its charm and friendliness.

Because Apex is close to Raleigh, which has a population of almost half a million, residents can take a quick trip to visit the North Carolina Museum of Art and other attractions. But Apex itself has plenty of activities for locals. Some favorites include exploring the American Tobacco Trail and Jordan Lake Recreation area, visiting the Halle Cultural Arts Center, and checking out the local microbreweries, vineyards, and farmers’ markets.

The vibe is family-focused, with the average age of Apex residents being 38.3 years old, and 66% of the population is married. With almost 74% of residents holding a bachelor’s degree, it’s a professionally-oriented community. However, with a cost of living a bit above the national average, you may want to tweak your budget and use a spending tracker to make sure you stay financially savvy.

2. Greenville, South Carolina

•   Population: 72,822

•   Median household income: $73,536

•   Median home value: $317,341

•   Average monthly rent: $1,574

•   Mean travel time to work: 20 minutes

•   Cost of living: 7% lower than the national average

•   Crime rate: 1 in 162 chance of becoming a victim of a violent crime

If you’re looking for a picturesque setting worthy of a postcard, Greenville may be the place for you. Situated in the northwest part of the state about halfway between Charlotte, North Carolina, and Atlanta, Greenville is a stone’s throw from the Blue Ridge Mountains, lakes, rivers, and more than 50 waterfalls.

Greenville’s population is diverse, and the city is well-suited to families, retirees, and singles. Parents will find it appealing because of a highly rated public school system and myriad family friendly activities including Falls Park on the Reedy River, Greenville Zoo, and the Children’s Museum of the Upstate.

For older adults, Greenville is often recommended as an ideal place to settle. The pace of living is slower, the weather is mild, and South Carolina is one of the best states to retire in when it comes to taxes.

Like many smaller towns and cities, Greenville has a dedicated Main Street and lively downtown area catering to pedestrians. “Mice on Main” is a series of nine life-size bronze sculptures scattered up and down the main drag, providing a fun scavenger hunt for all ages.

Foodies can enjoy an array of international and regional specialties, including a bustling weekend farmer’s market and several food trucks. More than 20 local breweries also serve as music venues and community centers.

The city has a rich African-American heritage, with 13 cultural sites across the greater Greenville area. Residents and tourists can catch the city’s minor league baseball team, the Greenville Drive, the Swamp Rabbits hockey team, plus professional men’s and women’s soccer teams.

3. Ames, Iowa

•   Population: 65,676

•   Median household income: $58,693

•   Median home value: $260,676

•   Average monthly rent: $1,250

•   Mean travel time to work: 17 minutes

•   Cost of living: 5% lower than the national average

•   Crime rate: 1 in 525 chance of becoming a victim of a violent crime

Home to Iowa University, Ames is a bustling college town in the center state, north of Des Moines. This energetic city is frequently listed as one of the best places to live in the country and one of the best college towns in the U.S.

Schools here win national recognition, and the cost of living is reasonable. If you’re looking for racial and ethnic diversity, Ames comes up short, with 78% of the population white. The city also skews young, with many college kids. While the city might not suit all retirees, families will find many parks, with opportunities for biking, golf, and an indoor ice arena.

Ames has an old town historic district and a downtown full of shopping, dining, art galleries, and live music. The Iowa summers can be warm, humid, and often rainy, while the winter brings cold temperatures and often snow. But if you enjoy the heartland, Ames is a charming place to consider.

4. Fredericksburg, Texas

•   Population: 11,254

•   Median household income: $57,474

•   Median home value: $496,229

•   Average monthly rent: $1,600

•   Mean travel time to work: 17 minutes

•   Cost of living: 7% lower than to the national average

•   Crime rate: 1 in 1,282 chance of being a victim of a violent crime

Fredericksburg is located in the middle of the state, in Texas Hill Country. It’s often voted one of the best places to retire, with retirees making up more than a third of the population. Older adults are drawn to the warm weather, low property taxes, and affordable housing, and low crime.

Fredericksburg was founded by German immigrants back in 1846, and the city retains a strong German connection. About 79% of the population is White, and 19% of the population is Hispanic or Latino.

Tourism makes up a good part of the local economy, along with the medical and agricultural industries. A staggering 400 festivals take place each year, including a three-day Oktoberfest. Visitors will find a raucous live music scene, numerous breweries and distilleries, and more than 100 wineries in the area. In fact, Fredericksburg is the most popular wine-tasting destination in the state of Texas.

The Fredericksburg public school system is highly rated, and the many kid-friendly activities make it a great place to raise a family. Things to do include hiking trails and parks, and a Main Street featuring art galleries, restaurants, ice cream parlors, and toy stores. Younger adults and couples can take advantage of the many dance venues and bars.

5. Bloomington, Indiana

•   Population: 74,028

•   Median household income: $41,799

•   Median Home value: $310,327

•   Average monthly rent: $1,116

•   Mean travel time to work: 17 minutes

•   Cost of living: close to the national average

•   Crime rate: 1 in 215 chance of becoming a victim of a violent crime

Bloomington is the home of Indiana University and their legendary Hoosiers basketball and football teams. Often called B-Town, Bloomington is frequently cited as one of the best places to live in Indiana and in the U.S for its lively, bohemian vibe.

B-Town offers a walkable downtown area where you’ll find restaurants, bars, shops, museums, art galleries, and venues for live music and comedy. Bloomington also features many parks, forests, lakes, and other spots to commune with nature.

Much of life in Bloomington revolves around the university and its large student body, so retirees may not find it ideal. The city is often voted a great place to raise a family and gets high marks for its public schools. The cost of living is right at the national average, and the city is considered relatively safe.

Indiana winters can be very cold and snowy, and summers are warm, wet, and humid. It’s cloudy a good part of the year too. Bloomington is flush with youthful energy and rife with perks, making it a great Midwestern city to hang your hat.

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6. Cedar City, Utah

•   Population: 37,202

•   Median household income: $63,789

•   Median Home value: $404,529

•   Average monthly rent: $1,200

•   Mean travel time to work: 14 minutes

•   Cost of living: 3% lower than the national average

•   Crime rate: 1 in 587 chance of becoming a victim of a violent crime

Cedar City is located in the southwestern part of Utah, situated 5,800 feet above sea level. To the east you’ll find 10,000 foot mountains, and to the west, a large desert. If you’re an outdoors enthusiast, look no further than Cedar City for fishing, rock climbing, skiing, kayaking, and star gazing. Often called the gateway to Utah’s parks, Cedar City offers easy access to the spectacular Zion and Bryce Canyon National Parks.

Besides the amazing natural landscapes of red hills and alpine mountains, Cedar City plays host to a number of arts festivals, earning it the nickname of Festival City USA. Some of these events include the popular annual Utah Shakespeare Festival, the Neil Simon Festival, the Groovefest American Music Festival, and the International Red Rock Film Festival.

Cedar City provides a dense suburban atmosphere that primarily attracts young professionals and families, due to its lower cost of living and above average public schools. The city is home to the small Southern Utah University, and the city’s economy benefits from the school, along with tourism, agriculture, some mining, and industrial complexes.

7. Ithaca, New York

•   Population: 31,792

•   Median household income: $48,617

•   Median Home value: $332,205

•   Average monthly rent: $1,950

•   Mean travel time to work: 18 minutes

•   Cost of living: 1% higher than national average

•   Crime rate: Chances of becoming a victim of a violent crime is 1 in 461

Ithaca is often identified with its two colleges, Ithaca College and Cornell University. The busy college city is situated on Cayuga Lake, the second largest of the Finger Lakes. The region is also known for its gorges and numerous picturesque waterfalls.

Cornell is Ithaca’s largest employer, attracting educators and students from all over. While diverse, more than half the population is in the 18-24 age group. Retirees may prefer the summer months in Ithaca, when the universities are on break and the weather is mild. Winters in Ithaca can be extremely cold and snowy.

There’s no shortage of things to do in Ithaca for children, teens, and adults. Kid-friendly attractions include many area state parks, the Sciencenter, Ithaca Children’s Garden, and the Museum of the Earth. Everyone can enjoy strolling on Ithaca Commons, a pedestrian walkway offering a vast array of restaurants, shops, and events. Autumn brings the Downtown Ithaca Apple Harvest Festival, followed by the Chili Cook-Off in winter.

Downtown Ithaca offers an immersive street-art experience, with murals, sculptures, and a distinctly hippie vibe similar to Woodstock. Entertainment covers the gamut, with theater, film, and music. The State Theatre of Ithaca is an historic 1,600-seat venue featuring year-round concerts, comedy shows, readings, dance performances, and more.

Ithaca is considered safe, offering a lower cost of living, highly rated public schools, an inclusive sensibility, and lots of outdoor recreational options against beautiful scenery.

8. Easton, Maryland

•   Population: 17,202

•   Median household income: $73,460

•   Median home value: $436,267

•   Average monthly rent: $1,500

•   Mean travel time to work: 23 minutes

•   Cost of living: 3% lower than the national average

•   Crime rate: 1 in 253 chance of becoming a victim of a violent crime

A charming town located on the Eastern Shore of the Chesapeake Bay, Easton offers a blend of historic charm and up-to-the-minute amenities. It’s popular with families and retirees. Known for its well-preserved 18th- and 19th-century architecture, Easton boasts a picturesque downtown area with tree-lined streets and a vibrant arts scene. The town is home to a diverse community of residents, including artists, professionals, and families who appreciate the small-town feel and strong sense of community. Tuckahoe Street is a focal point, featuring boutique shops, galleries, and restaurants that cater to both locals and visitors.

The job market in Easton is diverse and growing, with opportunities in healthcare, education, and tourism. The presence of institutions like the University of Maryland Eastern Shore and Chesapeake College typically provides a steady stream of educational and employment opportunities. Additionally, the town’s proximity to the Chesapeake Bay and its natural beauty make it a hub for outdoor and recreational activities, attracting businesses and professionals in the tourism and hospitality sectors.

Residents of Easton enjoy a high quality of life, with an array of cultural attractions and activities. For example: The Tidewater Inn, a historic landmark, hosts events and gatherings, while the Academy Art Museum showcases local and national artists. The annual Waterfowl Festival and the Easton Farmers’ Market are beloved community events that celebrate the town’s heritage and natural beauty. Outdoor enthusiasts can explore the Miles River and the Tred Avon River by boat or kayak, or enjoy the many parks and trails, such as the Easton Waterfowl Park and the Tuckahoe State Park.

9. Santa Fe, NM

•   Population: 89,157

•   Median household income: $70,940

•   Median home value: $573,092

•   Average monthly rent: $1,804

•   Mean travel time to work: 20 minutes

•   Cost of living: 14% higher than national average

•   Crime rate: 1 in 116 chance of being a victim of a violent crime

The capital city of New Mexico, Santa Fe is a popular place to visit, attracting about 2 million tourists a year. It’s also frequently touted as one of the best cities to live, especially for those approaching retirement. In fact, about a third of the city’s population is 60 and older. You’ll note that the cost of living is somewhat higher than the national average.

Sante Fe promotes a laid-back lifestyle amid a stunning Southwestern setting. Because of its slower pace, the city skews suburban and doesn’t feature a lot of nightlife. It does provide a diverse, culturally rich scene with a strong artistic and intellectual community. Visitors include authors, scholars, and global thought leaders giving lectures on a variety of topics. Entertainment offerings include productions by the Santa Fe Opera, the Sante Fe Symphony, the local Santa Fe Playhouse theater company, and live music at multiple venues.

People looking to move to Sante Fe to bring up children can count on an above average public school system. Some people find Santa Fe a relatively expensive place to live, especially when it comes to housing. But the city has a relatively low crime rate and dry climate. Summers are warm to hot, with temps typically staying under 90 degrees, while winters are cold and snowy.

One thing to keep in mind, Santa Fe sits at 7,000 feet above sea level, so it can take a couple of days to adjust. For a small city, Sante Fe is rich with culture, history, the arts, and great Southwestern cuisine. If you crave peace and quiet set against mountain scenery, Sante Fe might be the perfect place for you.

10. Bellingham, Washington

•   Population: 94,712

•   Median household income: $54,867

•   Median home value: $667,629

•   Average monthly rent: $1,925

•   Mean travel time to work: 18 minutes

•   Cost of living: 23% higher than national average

•   Crime: 1 in 302 chance of being a victim of a violent crime

Looking for a home in the Pacific Northwest that’s not Seattle or Portland? Consider Bellingham. While its cost of living is above average, it has many positives. This coastal city in northwestern Washington serves up an expansive view of the Puget Sound. The area is known for its clean air, eco-friendly attitudes, and chill ambiance. Bellingham is positioned halfway between Vancouver, Canada, and Seattle, with easy access to the San Juan Islands and the Mount Baker and North Cascade mountain ranges.

Outdoor enthusiasts enjoy hiking, biking trails, fishing, boating, kayaking, and whale watching. Numerous beaches offer visitors a variety of landscapes, from hidden white sands to rocky shorelines and wetlands.

Families with children can rest assured the Bellingham public school system is highly rated. There are lots of kid-centric things to do, including Boulevard Park, where kids can frolic in a pirate-themed playground, and the Family Interactive Gallery at the Whatcom Museum.

Bellingham’s active Downtown area offers shopping, dining, art, and entertainment. You’ll find public art exhibitions, a classic bowling alley, theaters, performing arts venues, museums, and the Pickford Film Center, where you can catch independent and classic movies.

Bellingham has a strong and growing retiree population, along with college students from Western Washington University, and many young professionals. At nearly 80% white, Bellingham isn’t particularly diverse.

The area enjoys comfortable summers with temperatures rarely exceeding 82 degrees. However, winters bring overcast skies, cold, and rain. It’s a relatively safe city though it can be more expensive than others of its size. But if you want a small, seaside city with plenty of amenities, Bellingham lives up to its hype.

11. Portland, Maine

•   Population: 69,104

•   Median household income: $83,399

•   Median Home value: $559,709

•   Average monthly rent: $2,141

•   Mean travel time to work: 20 minutes

•   Cost of living: 11% higher than the national average

•   Crime: 1 in 443 chance of becoming a victim of a violent crime

It’s understandable why Portland is frequently recommended as one of the best small cities in the U.S. Located on the Casco Bay shoreline, this small New England city is known for its connection to the sea, with its many lighthouses, rocky beaches, and sublime seafood.

People of all ages enjoy visiting and living in Maine’s largest city. Portland is home to the University of Southern Maine, and many former students make the city their home. Portland is considered one of the healthiest places for older adults, due to access to the outdoors and many recreational activities. Portland’s public school system is highly rated. The area is also more racially diverse than many other small cities, and crime is low.

There’s an abundance of room to stretch out in Portland, with more than 7,000 acres of public parks and open space. Fishing, sailing, and kayaking are popular ways to enjoy the area’s natural resources.

The quaint historic district of Old Port and the downtown area offer shopping, art galleries, restaurants, entertainment, and excellent people-watching. You can find plenty of cultural sites downtown too, including theater, movies, and live music. Many Portland locales cater to children, such as the beachfront amusement park Palace Playland and the Children’s Museum and Theater of Maine.

You’ll enjoy comfortable summers in Portland, but expect very cold, windy, and snowy winters. Portland can be the ideal spot if you love the Northeast, spending time outdoors, and living in a coastal town.

12. Burlington, Vermont

•   Population: 44,649

•   Median household income: $68,854

•   Median Home value: $507,170

•   Average monthly rent: $2,100

•   Mean travel time to work: 19 minutes

•   Cost of living: 15% higher than the national average

•   Crime: 1 in 241 chance of becoming a victim of a violent crime

Burlington is known for its warm and welcoming inhabitants, growing racial diversity (one in four people moving here is a person of color), and excellence in public school education. It’s also home to two institutes of higher education, the University of Vermont and Champlain College.

Ski resorts are a major draw, especially Stowe Mountain Resort and Cochran’s Ski Area. Burlington gets six feet of snow each year, making it a true winter wonderland. The summers are warm, and the change of seasons is visually dramatic.

Burlington has a flourishing arts and culture scene, with the city playing host to the annual Vermont International Film Festival, theatrical and musical productions at the Flynn Theater, and comedy shows at the Vermont Comedy Club.

Kids here are encouraged to stay active, with many opportunities for biking, hiking, sailing, and winter sports. Younger kids flock to Vermont Teddy Bear Factory, where they can shop for a handcrafted plush friend.

The cost of living in Burlington can be challenging, and affordable housing hard to come by. But Vermont is one of the safest states to live in the U.S., making it a good option for well-off retirees who aren’t afraid of the snow.

The Takeaway

With thousands of small cities in the USA to choose from, naming even the top 100 would be quite a challenge. Our list of the 12 best small cities in the U.S. is based on safety, quality of education, arts and culture offerings, overall cost of living, and climate, among other factors. Whether you’re looking for a great place to raise kids or retire, we hope that one of our suggested small cities will pique your interest and prove to be a budget-friendly home base.

Take control of your finances with SoFi. With our financial insights and credit score monitoring tools, you can view all of your accounts in one convenient dashboard. From there, you can see your various balances, spending breakdowns, and credit score. Plus you can easily set up budgets and discover valuable financial insights — all at no cost.

See exactly how your money comes and goes at a glance.

FAQ

What is the best small city to live in the United States?

No two small cities are alike, and the best small city for you depends on what you’re looking for. Generally, you want to find a safe, affordable city offering a vibrant cultural scene and opportunities for indoor and outdoor activities. We like Apex, NC; Cedar City, UT; and Greenville, SC, among others. But the best small city boils down to personal choice.

Where are some of the best small towns to live in?

Which small town is best to live in is a matter of personal taste. That said, some of the small towns — with populations under 5,000 — many people give a thumbs-up to include Sedona, AZ; Carmel-by-the-Sea, CA; Mystic, CT; Gatlinburg, TN; and Telluride, CO.

What is the friendliest little town?

According to Conde Nast Traveler’s most recent survey, Murray, Kentucky, and Charleston, South Carolina, are the friendliest small towns in the U.S.

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Photo credit: iStock/kate_sept2004

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The Health Education Assistance Loan (HEAL) program was created in 1978 to help medical students finance their degrees. The HEAL program worked by insuring loans made by participating lenders to help graduate students in various health care fields — including medicine, dentistry, and clinical psychology — cover the costs of their schooling.

HEAL loans are no longer available; the program was discontinued in 1998. However, there are a number of other ways medical students can finance a degree. In this guide, learn about options that can help borrowers cover the cost of medical school now, as well as what you should know if you’re still paying off HEAL student loan debt from years ago.

Overview of HEAL Student Loans

Getting a medical degree, which typically takes more than 10 years to earn, can be very expensive. The total average medical school debt of graduates is $243,483, according to the Education Data Initiative.

The cost of medical school continues to rise each year. For the class of 2024, four years of attendance at a public school is $276,006, while private school costs $374,476, according to the American Association of Medical Colleges.

Through the HEAL program, from 1978 to 1998, the U.S. Department of Health and Human Services insured loans made by lenders to graduate students in the health care field to help them pay for medical school. The loans were insured by the federal government against loss due to borrowers’ death, disability, bankruptcy, or default. The program was meant to ensure that funds would be available to future students who needed them.

Key Features of HEAL Student Loans

With HEAL loans, eligible students could borrow up to $80,000 to help pay their medical education costs. Interest accrued and compounded on the loans while the student was in school and during the nine-month grace period allowed by these loans afterward.

HEAL loans typically had variable compounding interest rates, though lenders could offer fixed rates if they chose. With compounding interest, interest is added to the loan balance, and future interest is calculated on the new higher balance.

Borrowers could take up to 33 years to repay their HEAL loans. Because of the long repayment term, HEAL borrowers may still be paying off their loans.

End of the HEAL Program and Current Status

The HEAL program ended on September 30, 1998. In 2014, outstanding HEAL loans were transferred from the U.S. Department of Health and Human Services to the Department of Education. Even though the program ended, borrowers who have outstanding HEAL loans must still repay them.

To simplify the payment process, borrowers who have more than one HEAL loan can consider consolidating their loans into a federal Direct Consolidation loan. Through this process, you pay off your old loans with one new Direct Consolidation loan. Under the new loan, you have one monthly payment. You may also qualify for federal benefits, like income-driven repayment.

If you’re struggling to make your HEAL payments, contact your student loan servicer. Defaulting on HEAL loans has serious repercussions. A borrower’s account can be sent to collections or they can be taken to court, among other consequences. HEAL loans are exempt from statute of limitation laws, so theoretically, a lender can indefinitely pursue a borrower who is in default to try to collect on the loans.

If you’re currently in default on your HEAL loans, contact the Department of Education’s HEAL Program Team at [email protected].

HEAL Loans vs. Current Federal Student Loans

While HEAL loans are no longer available, there are other types of student loans for health professionals, including federal student loans and private student loans.

Medical students can apply for federal financial aid by filling out the Free Application for Federal Student Aid (FAFSA). Although graduate students are not eligible for Direct subsidized loans, they may qualify for other types of federal loans. They can also apply for private student loans. Here’s more information on each loan type.

Direct unsubsidized loans. With these federal loans, medical students can borrow money unsubsidized. This means the borrower is responsible for paying all of the interest on the loan. The interest begins accruing immediately and continues to accrue while they’re in school. Certain medical graduates may take out up to $40,500 per academic year in Direct unsubsidized loans with an aggregate limit of up to $224,000.

Direct PLUS loans. Often called a graduate PLUS loan, the federal Direct PLUS loan covers the difference between the cost of attending school and any other sources of funding, including Direct unsubsidized loans. A credit check is required to get a Direct PLUS loan. These loans are also unsubsidized and they tend to have higher interest rates than Direct unsubsidized loans.

HRSA loans. The Health Resources and Services Administration (HRSA), an agency of the U.S. Department of Health and Human Services, offers loan programs to some schools; these institutions then offer several different types of low-interest loans to qualifying students in need who are pursuing certain health care degrees. Check with your school to see if they offer HRSA loans and whether you are eligible.

Private student loans. Students can supplement federal student loans with private loans to help pay for medical school. These loans are available from banks, credit unions, and online lenders. Private loans may have fixed or variable interest rates, and the interest rate you’re offered will depend in part on your credit history. If the rate you end up with is higher than you hoped for, you could choose to refinance medical school loans later on if you can qualify for a lower rate or more favorable terms.

Private loans typically don’t offer the same benefits as federal student loans, such as income-driven repayment plans and Public Service Loan Forgiveness. For that reason, students may wish to explore other forms of funding first.

The Takeaway

The HEAL Loan Program ended in 1998, but some medical professionals may still be repaying their HEAL loans. If you have outstanding HEAL loans, you might be able to consolidate them into a federal Direct Consolidation loan and potentially qualify for an income-driven repayment plan, which could make repayment easier. Check with your loan servicer for more information.

Current medical students have a variety of funding options today that could help cover the cost of school, including federal loans and private loans. Explore the different alternatives to decide which type of financing is best for you, and remember that it’s possible to refinance student loans in the future once your medical career is underway.

Looking to lower your monthly student loan payment? Refinancing may be one way to do it — by extending your loan term, getting a lower interest rate than what you currently have, or both. (Please note that refinancing federal loans makes them ineligible for federal forgiveness and protections. Also, lengthening your loan term may mean paying more in interest over the life of the loan.) SoFi student loan refinancing offers flexible terms that fit your budget.

With SoFi, refinancing is fast, easy, and all online. We offer competitive fixed and variable rates.

FAQ

Can I still apply for a HEAL loan?

The HEAL program ended in 1998, and these loans are no longer available. However, there are other federal student loans for medical students, including Direct unsubsidized loans, Direct PLUS loans, and HRSA loans through the Health Resources and Services Administration. In addition, there are private student loans for those studying to become medical professionals.

Can HEAL loans be consolidated with other student loans?

Yes, you can consolidate HEAL loans with other federal student loans, including Direct unsubsidized loans, Direct PLUS loans, and Federal Family Education Loans (FFEL), into a Direct consolidation loan. This may allow you to take advantage of income-driven repayment plans and potentially, student loan forgiveness.

What should I do if I’m struggling to repay my HEAL loan?

Contact your loan servicer right away if you’re having trouble repaying your HEAL loan. The servicer can explain your payment options. Whatever you do, avoid missing payments. If you default on HEAL loans, the consequences can be serious. Your account can be sent to collections or you can be taken to court, among other repercussions. If you’re already in default, contact the Department of Education’s HEAL Program Team at [email protected].

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