Lana Oconnell
The high cost of medical school means that many doctors graduate with substantial student loan debt. This debt can be a heavy burden, with the average medical school graduate owing $243,483 to $250,995 in total student loan debt, including premedical debt. This is four times as much as the average college graduate. The large debt means that many doctors cannot pay back their student loans for many years, with 34% believing it will take more than 10 years to pay off their loans. There are various options for managing and repaying student loan debt, including loan forgiveness programs, refinancing, and income-driven repayment plans.
| Characteristics | Values |
|---|---|
| Average total cost of medical school in 2024 | $235,827 |
| Range of total costs by institution type and location | $161,972 (in-state, public school) to $264,704 (out-of-state, private school) |
| Average medical school graduate debt | $243,483 - $250,995 |
| Percentage of medical school students who use loans | 70% |
| Percentage of indebted medical school graduates (1988-1992) who had Health Professions Student Loans | 59.9% |
| Percentage of indebted students with Health Professions Student Loans by 2000 | 4.4% |
| Average debt of physicians after residency | $200,000 - $300,000+ |
| Percentage of physicians who expect to pay off loans in 6-10 years | 25% |
| Percentage of physicians who expect to pay off loans in more than 10 years | 34% |
| Average hourly rate for physicians working locum tenens | $32.45 more than permanent-only doctors |
| Percentage of physicians who work locum tenens within 10 years of entering the field | 59% |
| Average interest accrued on a $192,000 loan | $9,216 per year |
| Average monthly payment on a $192,000 loan | $768 |
| Average yearly income of a pediatrician | $175,000 |
| Average loan balance of a pediatrician | $400,000 |
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What You'll Learn
Average debt of medical school graduates
The average debt of medical school graduates varies depending on several factors, including the type of institution attended (public or private) and its location (in-state or out-of-state). According to the Education Data Initiative, the average total cost of medical school in 2024 is $235,827. However, this varies significantly depending on the institution and location, ranging from $161,972 for in-state public schools to $264,704 for out-of-state private schools.
The median medical school debt among graduates has also fluctuated over the years. In 2021, the median debt was $200,000, not including undergraduate debt. In 2023, the average debt for medical students was $250,995. By 2024, the average total educational debt, including premedical debt, for medical school graduates was $243,483. Indebted graduates who received more than $100,000 in scholarships from public institutions owed a median of $115,000, while those from private medical schools owed $130,000.
The cost of attendance and debt levels also differ between public and private medical schools. Private medical schools are generally more expensive, and graduates tend to leave with higher debt levels. In 2016, the median student debt among private medical school graduates was $200,000, compared to $180,000 for public school graduates. In 2025, 14% of public school graduates had at least $300,000 in combined med school and premedical debt, while the average debt for private college graduates was $218,746.
The long-term financial implications of medical school debt are significant. With standard loan terms of 20 years and an average interest rate of around 6%, graduates face monthly loan payments of approximately $1,800. Consistent and timely payments will see the average medical graduate concluding loan repayments around age 50. To manage their debt, graduates can explore various strategies, including income-driven repayment plans, public service loan forgiveness programs, private loan refinancing, and scholarship and grant opportunities.
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Loan forgiveness programs
The average medical school graduate owes 2.25 times as much as the average postgraduate college student, including their undergraduate debt. 70% of medical school students take out loans specifically to pay for medical school. The average total debt of medical school graduates is $243,483, including premedical debt. It is not uncommon for new doctors to carry student loan debt of $300,000 or more.
- Public Service Loan Forgiveness (PSLF): This federal program is targeted at physicians working for nonprofit or government organizations. After 10 years of repayment (120 qualifying payments), the remaining federal student loan debt is forgiven. PSLF is not an option for those working in private practice or for-profit groups.
- Income-Driven Repayment (IDR): IDR plans reduce monthly payments for federal loans based on income and family size. This is especially helpful for residents or fellows earning lower salaries. IDR plans lead to loan forgiveness after 20-25 years of eligible payments. The SAVE Plan is a recent addition to IDR, offering lower monthly payments and changing the way interest accrues.
- Indian Health Service (IHS) Loan Repayment Program: The IHS awards up to $40,000 for student loan repayment in exchange for a two-year commitment to practice in health facilities serving American Indian and Alaska Native communities.
- Health Resources and Services Administration (HRSA) Programs: The HRSA offers loan repayment programs such as the Faculty Loan Repayment Program (FLRP), where HRSA repays up to $40,000 of health professional student loan debt over two years. The Primary Care Loans program provides long-term, low-interest loans to full-time, financially needy students pursuing degrees in allopathic or osteopathic medicine.
- NHSC Loan Repayment Program: This program requires a commitment to serve for at least two years at an NHSC-approved site facing a shortage of healthcare professionals. This can lead to the forgiveness of up to $75,000 of eligible student debt, tax-free for certain disciplines providing primary care services.
- VA's SELRP Program: Resident doctors who commit to at least 24 months of service at a designated VA facility can receive up to $40,000 annually in loan repayment benefits, with a maximum of $160,000 in student loan relief.
It is important to evaluate your career goals and be willing to relocate or work in high-need areas to increase your chances of qualifying for loan forgiveness programs. Additionally, consider factors such as loan types, interest rates, credit score, and personal financial goals when exploring loan consolidation, refinancing, or forgiveness options.
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Refinancing options
The financial burden of student loans is a significant concern for many doctors, with the average medical school graduate owing more than twice the average postgraduate college student. The median debt for medical school graduates is $243,483, but it is not uncommon for new doctors to carry student loan debt of $300,000 or more.
Student loan refinancing is a popular option for doctors struggling to pay back their loans. This involves seeking a private lender to replace existing loans with a new loan at a new interest rate and with different terms. Refinancing can be done multiple times and can result in lower monthly payments and a reduced total amount owed over the life of the loan.
- Juno: This company offers exclusive benefits tailored to medical professionals, including discounted interest rates and cashback bonuses of up to $1,000.
- Splash Financial: This company is a leader in student loan refinancing for doctors and offers a special program for residents and fellows, allowing for payments as low as $100 per month during training.
- SoFi: SoFi offers private refinance loans for doctors, dentists, and other healthcare providers. While these loans do not offer the same repayment options as federal loans, they can provide a lower interest rate.
- Laurel Road: This company provides student loan refinancing with potential benefits such as Public Service Loan Forgiveness and Income-Driven Repayment plans. However, refinancing federal loans with a private lender like Laurel Road may result in the loss of certain federal benefits.
- White Coat Investor: This company, created by StudentLoanAdvice.com, specifically helps doctors, dentists, and other high earners tackle their student debt. They offer personalized plans for a flat fee to help manage and eliminate debt.
It is important to carefully consider all options and seek advice before refinancing federal student loans, as it may impact eligibility for certain federal benefits and loan forgiveness programs. Additionally, doctors can explore strategies such as working locum tenens or per diem shifts to increase earnings and make extra payments toward their loans.
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Repayment strategies
The average total cost of medical school in 2024 is $235,827, with the average medical school graduate owing $243,483 in total educational debt, including premedical debt. It is not uncommon for new doctors to carry student loan debt of $300,000 or more, with interest payments alone accounting for $164,000–$254,000 of repayments.
Given the substantial financial burden that medical school debt poses, it is important to understand the various repayment strategies available. Here are some options to consider:
Public Service Loan Forgiveness (PSLF)
Public Service Loan Forgiveness (PSLF) is a federal program that offers tax-free loan forgiveness for physicians working in the nonprofit or public sector. This includes working for hospitals, universities, nonprofit organizations, or government agencies. After 10 years of full-time service (120 qualifying payments), the remaining loan balance is forgiven. PSLF is not an option for those working in private practice or for-profit groups.
Income-Driven Repayment (IDR)
Income-Driven Repayment plans, such as Pay as You Earn (PAYE), Income-Based Repayment (IBR), and Income-Contingent Repayment (ICR), base your monthly federal loan payments on your income and family size. This can be especially helpful during residency when salaries are typically lower. IDR plans generally lead to loan forgiveness after 20–25 years of eligible payments.
Private Loan Refinancing
Private loan refinancing involves converting federal loans into bank loans, which often come with lower interest rates and improved repayment terms. Private loans can be refinanced multiple times to take advantage of lower rates. However, refinancing federal loans with a private lender eliminates the possibility of loan forgiveness.
Locum Tenens Work
Many early-career physicians take on locum tenens or per diem shifts to increase their income and accelerate debt repayment. Locum tenens physicians can earn an additional $32.45 per hour compared to permanent-only doctors, making it a lucrative option for those seeking to pay off their loans quickly.
State and Federal Repayment Programs
Various state and federal repayment programs offer loan assistance in exchange for service. For example, the National Health Service Corps (NHSC) Loan Repayment Program offers up to $50,000 toward loan repayment for licensed healthcare providers who serve for two years at an approved site. The U.S. Department of Health and Human Services' Primary Care Loan program provides long-term, low-interest loans to financial-needs students pursuing degrees in allopathic or osteopathic medicine.
Consolidation and Refinancing
Consolidating or refinancing student loans can make repayments more manageable by extending repayment terms. However, it is important to consider the potential impact on interest rates, credit score, and long-term repayment costs.
It is important to carefully evaluate your financial situation, loan types, interest rates, and career goals before choosing a repayment strategy. Seeking advice from a student loan specialist or financial advisor can help you make a well-informed decision.
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Impact on career choices
The financial burden of student loans has a profound impact on career choices, and this is particularly evident in the medical profession. The average medical school graduate owes 2.25 times more than the average postgraduate college student, with total educational debt averaging $243,483. This substantial debt influences career decisions in several ways.
Firstly, it discourages further education. Many graduates with high student loan debts opt out of pursuing advanced degrees due to financial constraints. This is reflected in the decreasing rates of low-income students entering medical school, as the prospect of accumulating more debt is daunting.
Secondly, debt influences job choices. Graduates with debt are more inclined to pursue higher-paying positions to expedite debt repayment. This tendency leads to a skew in the workforce, with fewer people opting for lower-paying but socially valuable roles in the public interest sector. This dynamic is evident in the medical field, where physicians may be incentivized to enter private practice instead of serving in nonprofit or government organizations due to the financial burden of their student loans.
Thirdly, debt affects career progression and economic mobility. The burden of monthly loan payments can hinder young professionals from saving, investing, or taking entrepreneurial risks. This can set them back financially and impact their long-term economic mobility. In the medical field, this may translate to physicians delaying career advancements or specialty training due to the need to prioritize debt repayment.
Additionally, debt influences career satisfaction and personal life choices. Graduates often find themselves balancing financial stability with career fulfillment. The weight of debt may push individuals towards higher-paying fields, sometimes sacrificing their passions and interests. This compromise can impact overall job satisfaction and lead to psychological stress. Moreover, debt may cause individuals to delay major life milestones, such as marriage, homeownership, or starting a family, affecting their overall quality of life.
Lastly, debt can prolong financial strain and impact wealth accumulation. Graduates with student loans often experience financial distress, including late payments, credit denial, and foreclosure. This strain can extend beyond the early career years, impacting long-term wealth accumulation. In the medical profession, this may mean that physicians carry the burden of debt well into their careers, influencing their career trajectories and financial well-being.
In summary, student loan debt has a significant impact on career choices, and this is especially true for doctors facing substantial educational debt. The burden of debt influences decisions about further education, job choices, career progression, economic mobility, career satisfaction, and personal life choices. Understanding the implications of student loan debt is crucial for graduates to make informed decisions about their careers and financial futures.
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Frequently asked questions
It is unclear exactly how many doctors are unable to pay back their student loans, but it is a common issue. The average medical school graduate owes $243,483 to $250,995 in total student loan debt, including premedical debt, which is four times as much as the average college graduate. 70% of medical school students take out loans, and 48.2% of those entering medical school in 2023 cited their ability to pay off debt as a primary concern.
Depending on various factors, it can take doctors 10 to 30 years to pay off their student loans. 25% of doctors expect to take 6 to 10 years, and 34% expect to take at least 10 years.
Doctors who are unable to pay back their student loans can consider the following options:
- Public Service Loan Forgiveness (PSLF): Federal student loans are discharged after 10 years if you work for a nonprofit hospital or medical facility, the military, or academia.
- Income-Driven Repayment (IDR): Monthly payments for federal loans are based on income and family size. This can put borrowers on the path toward student loan forgiveness after 20-25 years of eligible payments.
- Private loan refinancing: Federal loans are changed into a bank loan, which typically has lower rates and improved repayment terms.
- Student loan management options: These options can include forgiveness, repayment, and refinancing.
Doctors who want to pay off their student loans more quickly can consider the following strategies:
- Work locum tenens or per diem shifts and apply the extra earnings toward loan payments.
- Refinance with a lender like SoFi and pay more than the minimum payment during residency.
- Enroll in the PAYE repayment program to keep monthly payments as low as possible and maximize the amount forgiven.
- Enroll in REPAYE during residency and then refinance when you start practicing. Monthly payments are only 10% of discretionary income.
