Medical professionals typically leave school with a high amount of student loan debt. The Association of American Medical Colleges found that the median amount of debt for medical school graduates in 2022 was $205,037.
Even as potential high income earners, it’s easy to see why medical professionals may want help paying off their student loans. This is where partial or full forgiveness or repayment assistance can help.
Since qualifications are unique to each program, it’s worth checking eligibility criteria to determine whether you can take advantage of multiple forgiveness programs.
- What is medical school loan forgiveness?
- Armed Forces loan repayment programs
- Public Service Loan Forgiveness
- National Health Service Corps
- NHSC Students to Service
- Indian Health Service
- Other ways to repay your medical school debt
What is medical school loan forgiveness?
As the name implies, students can qualify for forgiveness with medical student loan forgiveness programs. Some of these programs relate specifically to medical school debt, but some are more broad and can apply to multiple types of debt (like the Public Service Loan Forgiveness (PSLF) Program).
Student loan forgiveness programs involve canceling, discharging, or forgiving some or all your student loan debt. These programs can help graduates save a lot of money, which can make it much easier for them to focus on building a strong financial foundation.
Armed Forces loan repayment programs
The Loan Repayment Program (LRP) involves the Army repaying some of a soldier’s qualifying student loans, but not everyone qualifies for this program. This is a special incentive that only qualified applicants entering the Army may qualify for. You must belong to one of the specified Military Occupational Specialties (MOSs) to qualify for the LRP.
To better understand if you may qualify for the LRP, the Army provides resources for a variety of types of service members:
- Regular Army: Active Duty
- Regular Army: Retired
- Army National Guard: Active Duty Under Title 10 USC or Title 32 USC (Full-Time National Guard Duty)
- Army National Guard: State Active Duty
- Army National Guard: Drilling
- Army National Guard: Retired
- Army Reserve: Active Duty
- Army Reserve: Drilling
- Army Reserve: Retired
State student loan forgiveness programs
Along with federal student loan forgiveness programs, the District of Columbia and 47 states offer specific student loan forgiveness programs for their residents.
Often, these programs help provide forgiveness to those working in public service fields. Usually, they require a service commitment. Health care, teaching, dentistry, and legal are just some of the many public service programs.
Because all states offer different types of student loan forgiveness programs, you’ll need to research what options are available in the state you live and work in. These programs tend to be run by various state programs and offices, so you can start your search with your local state government.
Public Service Loan Forgiveness
Medical professionals employed by a government or nonprofit organization may be able to qualify for the PSLF program. Once you make 120 qualifying monthly payments under an approved repayment plan, while also working full-time for an eligible employer, your remaining balance on any Direct Loans will be repaid.
To apply for this program, see if your employer qualifies. From there, you have to certify your employment each year. Once you meet all program requirements, you can apply for forgiveness.
| Tip: It’s best to certify your employment each year so you don’t have to try to play catch up when it’s time to apply for forgiveness. |
National Health Service Corps
The National Health Service Corps offers the State Loan Repayment Program (SLRP), which makes funding accessible for states and territories to operate loan repayment programs.
These programs address the health care needs of local residents. Primary medical, mental/behavioral, and dental clinicians can receive help paying off their student loan debt when they work in areas affected by provider shortages.
| Tip: You will need to research if any student loan forgiveness programs funded by the National Health Service Corps are available in your area. Contact your state’s Department of Public Health for information. |
NHSC Students to Service
Participants in the NHSC Students to Service program help provide primary health services to needy communities in exchange for money towards their student loans. You can receive up to $120,000 in four annual installments (up to $30,000 each year) if you meet program requirements such as three years of full-time clinical practice at an NHSC-approved site in a HPSA.
After finishing the first three years of service, you may even be able to qualify for additional funds to pay off any remaining educational loans. You can do this by signing on for one-year continuation service contracts.
| Tip: To learn more about how this program works, you can review the NHSC Students to Service LRP Application and Program Guidance. |
Indian Health Service Loan Repayment Program
This program provides up to $40,000 to IHS clinicians to repay their eligible health profession education loans. Program participants must commit to a two-year service commitment and will practice in health facilities that serve American Indian and Alaska Native communities.
| Tip: If you think the Indian Health Service is right for you, their monthly award cycle deadlines fall on the 15th of every month. |
Other ways to repay your medical school debt
If you don’t qualify for the student loan forgiveness programs mentioned above, you can take other steps to pay off your medical school debt faster. By doing so, you’ll have more time and resources to put toward building your financial future.
Let’s examine some of those strategies:
Employer student loan repayment assistance
Some companies offer student loan repayment assistance as an employee benefit. You may have to commit to working for the company for a certain amount of years to qualify for assistance. Usually, there is a lifetime cap on how much assistance an employee can receive.
When looking for jobs, make sure to research which employers can provide assistance. You can also see which employers may offer a signing bonus that you can put towards paying off a chunk of your student loan debt.
| Good to know: As part of the pandemic relief efforts, employers are able to offer up to $5,250 in tax-free student loan repayment benefits to their employees through 2025. |
Federal Direct Consolidation Loan
If you have multiple federal student loans, you can combine them into just one loan — a Federal Direct Consolidation Loan — which can simplify the repayment process.
You’ll get a fixed interest rate that is an average of your previous interest rates. Some people find it easier to repay their student loan debt when they have just one loan to focus on.
| Tip: You can qualify for an income-driven repayment plan (IDR) when you have a Federal Direct Consolidation Loan, so your payments will be based on how much money you make. |
Income-driven repayment plan
If you’re struggling to afford your monthly payments on your federal student loans, you can sign up for an income-driven repayment plan (IDR). This method reduces payments to just 10% and 20% of your discretionary income.
Income-driven repayment plans also extend your repayment period up to 20 or 25 years as an additional benefit. Once that period ends, any remaining balance on your federal student loans are forgiven.
Refinance your student loans
If you have private student loans or a mix of federal and private student loans and want to consolidate your debt, you can refinance with a private lender. You can also do this if you only have one student loan.
Additionally, refinancing can help you earn a better interest rate for more savings. If you’ve improved your credit score, you may be able to get a lower interest rate on this new loan (you will use this loan to pay off your old loans. These savings, which you may top off your monthly minimum payment with, can make it easier to pay off your student loans faster.
If you have a large amount of student loan debt, having a lower interest rate can make it possible to save money over the life of your loan.
If you think refinancing may be the right fit for you, it’s best to shop around with different lenders to see who can offer you the best interest rate and terms.