Medical school is a very expensive proposition. Tuition costs alone can leave aspiring physicians with hundreds of thousands of dollars in student loan debt. In addition to tuition costs, you also have to factor in the price of books and technology, fees, and living expenses.
Fortunately, you don’t have to spend a lifetime repaying medical school debt. You have many options for refinancing student loans and getting out of debt faster.
- Average medical school debt
- How much should you borrow?
- Extreme medical school debt
- Cost to repay medical school debt
- How long does it take to pay off medical school debt?
- How to refinance medical school loans
Average medical school debt
As of 2022, medical students graduated with an average of $241,600 in debt — and medical school costs are projected to increase over the next few years, according to the nonprofit International Medical Aid.
Public vs. private medical school debt
The average cost of a private medical school is much higher than the average cost of a public medical school. This disparity is due in part to the fact that the cost of attendance at public universities is heavily subsidized by state governments, whereas private universities rely more heavily on tuition to cover their operating expenses. Private schools often have smaller class sizes and, thus, a higher price tag.
That’s why the average four-year cost for a public medical school is $250,000, compared to $330,180 for private medical schools, according to the Association of American Medical Colleges.
For 2021, U.S. News reports that graduates of the following five schools incurred the most medical school debt.
| School | Average indebtedness of 2021 graduates |
|---|---|
| Nova Southeastern University Patel College of Osteopathic Medicine | $309,206 |
| Western University of Health Sciences | $276,840 |
| Western Virginia School of Osteopathic Medicine | $268,416 |
| New York Medical College | $266,849 |
| Michigan State University College of Osteopathic Medicine | $261,527 |
How much medical school debt should you borrow?
When looking into how much medical school debt you can afford, it’s important to know your options. You don’t want to take on more debt than you need to, but you also don’t want to shortchange yourself and wind up with too little money to cover your expenses.
One way to get an idea of how much money you can borrow is to use a student loan calculator. This tool will help you determine how much your monthly payments will be based on different loan amounts, interest rates, and terms.
It’s important to remember that the amount of debt you take on will affect your future finances. So, before you decide how much money to borrow, make sure you understand the long-term consequences of doing so.
Average physician salary
Most people think of doctors as high earners, which is often the case — but not immediately. The average first-year resident makes about $60,000 annually, according to the American Medical Association. It’s crucial to consider what kind of repayment plan you can afford when deciding how much medical school debt to take on.
Extreme medical school debt
While the average medical school student graduates with a little over $200,000 in student loan debt, it’s not unheard of for aspiring doctors to borrow more than that — sometimes much more.
Here’s how total education debt, including premed and medical school, breaks down for recent graduates, according to the AAMC 2022 Medical School Graduation Questionnaire.
| Total education debt | Percentage of graduates |
|---|---|
| No Debt ($0) | 28.9% |
| $1 to $49,999 | 5.4% |
| $50,000 to $99,999 | 5.9% |
| $100,000 to $149,000 | 9.2% |
| $150,000 to $199,999 | 12.9% |
| $200,000 to $299,999 | 23.4% |
| $300,000 to $399,999 | 10.7% |
| $400,000 to $499,999 | 2.8% |
| $500,000 or more | 0.9% |
Cost to repay medical school debt
According to a study from Weatherby Healthcare, 34% of doctors with medical school debt expect to take at least 10 years to pay off their student loans. Another 25% expect to take six to 10 years to pay off their debt.
If you’re wondering how long it will take to pay off your student loans and how much your total loan payments will be, a student loan payoff calculator can help you figure that out.
How long does it take to pay off medical school debt?
If you don’t want to spend the first decade of your career (or longer) in debt, several options can help you pay off your student loans quickly.
Here are some ways to pay off medical school debt fast.
- Make extra payments. Rather than paying just the minimum each month, pay a little extra toward the loan’s principal. Even small additional principal payments can cut years off of your loan repayment timeline.
- Refinance your loans. Refinancing multiple loans into one can make repayment easier. And if you can lower your interest rate in the process, you can pay off your loan faster.
- Look into loan forgiveness programs. Many federal and state forgiveness programs can help you pay off your student loan debt. You may need to work in certain areas or for a not-for-profit healthcare or government organization.
How to refinance medical school debt
You can refinance your medical school debt a few different ways. One method is to try refinancing with your current lender. This can be a great option if you’re happy with your current lender and they offer competitive rates.
Another option is to work with a private lender. Many private lenders provide student loan refinancing, each with different terms and rates.
If you have federal student loans, you may want to consider a Direct Consolidation Loan. This allows you to keep many of the benefits of federal student loans, including access to income-driven repayment plans and loan forgiveness programs.
Here’s a step-by-step game plan if you’re ready to start the refinancing process.
- Research and compare lenders. Lenders have different rates and terms, so it’s important to shop around and compare rates before choosing a company to refinance with.
- Pick a loan option. Look for a loan with the best rates, low fees, and a repayment term that fits your budget.
- Complete an application. Most lenders have online applications. You may also need to provide the lender with a copy of your driver’s license or another government-issued ID and copies of loan payoff statements from your existing loan servicers.
- Manage your payments. Consider setting up automatic payments to ensure you never miss a payment, as missed payments can lead to late fees and damage your credit.
Whatever route you decide to take, make sure you understand the terms of the loan agreement before signing. It’s also important to stay on top of your payments to get rid of your debt as quickly as possible.