Student loan forgiveness for doctors
In addition to using clever repayment strategies, physicians might look into student loan forgiveness for doctors. It can be a lifeline for physicians who struggle with the average medical school debt or owe even more.
That’s probably why 3 in 5 physicians completing a residency in 2017 cited student loan forgiveness as a major concern.
The trade-off, however, is fewer employment choices. You’ll likely have to work in an area of high need or for a nonprofit hospital to qualify for programs that offer loan forgiveness for doctors. Staying eligible for student loan forgiveness through these programs also might limit your choice of pay, specialty, location, and employer.
If you’re willing to make these sacrifices, student loan forgiveness programs can pay off in the long run for you.
Public Student Loan Forgiveness (PSLF) for doctors
Physicians whose work qualifies as “public service” can qualify for the Public Student Loan Forgiveness Program. borrowers must make 120 Consecutive payments (monthly payments for 10 years) basically if you make these payments which is only for 10 Years the remaining balance will be forgiven and the debt at the end of the ten years will be paid in full while carrying out PSLF-qualified work.
This is determined by their employer. Public service includes full-time employment by a 501(c)(3) tax-exempt nonprofit or public institution (which many hospitals are). It also includes working in areas that are undeserved or have a high need for medical professionals.
Many medical professional’s struggle with the mountains of debt obtained on their journey to become a doctor. As they get closer to having the official title of MD next to their name, many begin to look for a way out. It was reported in 2014 by the Association of American Medical Colleges that the average indebted graduates in the class of 2104 carried $176,348 in loans, a staggering number for the cost of becoming a doctor. Many physicians consider the fact they will earn a six-figure income, but during residency the average income ranges from $40,000 to $50,000. That means the interest on their mountain of debt is equal to a paycheck. Fortunately, recent medical school graduates can help minimize the crushing debt by pursuing a student loan forgiveness program.