Cost of Medical Educational and Its Sources Like that of everything else, the cost of educating physicians is rising. The cost allocation methodologies are currently being re-evaluated and improved, and new cost figures being developed by both the Institute of Medicine and the Association of American Medical Colleges. The latter's study places the cost per medical student in the range of $16,000 to $26,000 per year.1 These costs have been variously financed by the student, state and federal governments, and the private sector. The last has not kept proportionate pace with rising costs and now comprises only 3 per cent . . .