How to Pay Medical School Debt

According to the Association of American Medical Colleges, the average medical student in 2009 came out of academics with $156,456 in medical school debt. The cost of medical school is enormous. In addition, many students take out additional loans to cover specialized training for specific fields of medicine. If you are a recent graduate of medical school, you are likely concerned about debt repayment. The federal government provides a substantial amount of counseling and income-based programs to help you maintain a grip on your medical school debt. However, in addition to utilizing federal programs, you must be disciplined about your repayment and make it a priority.

Instructions

1

Pull a credit report. This will help you discover the total outstanding balance on all of your medical school loans. This could be a humbling process. Visit Annual Credit Report for a free copy of your report. Add up all medical school loans to get the total. Keep this figure handy.

2

Calculate your total income. The federal government offers income-based repayment programs that may reduce your monthly payments. For example, if you earn $50,000 and you have a wife and a child, the maximum payment you would have to make under the IBR Plan is $282 per month. Contact your loan servicer to apply for this program.

3

Work in the public service field. This could be any state-subsidized hospital or health clinic, or directly for the federal government Health and Human Services department. If you are enrolled in the IBR Plan and make payments for 10 years, your total medical school debt could be cancelled.

4

Make a personal budget with your medical debt in mind. Make sure to leave some room for entertainment and going out. If you cut all non-essential expenses from your budget, you'll end up resenting the plan and possibly forgoing it altogether.

5

Search for employers in the health field that offer loan forgiveness. Some employers reward their doctors, usually after a number of years in service, by paying a portion or all of the employee's medical debt. Start this search when you are in medical school. Use career services for help.