Medical School

Debt Management

It's no secret that most medical students start their medical careers with debt from student loans. Tuition increases, escalating interest rates and cuts in Title VII funding worry many students as they face limited repayment options and diminishing government support for such programs. Concerns about being able to pay off student loans in a reasonable amount of time worry many students, but many family physicians find they can do this quickly on their salary as a practicing physician.

Although financing medical school may seem like an overwhelming task, numerous materials exist to help you understand and manage your debt. The AAFP's Debt Management Guide is a great educational resource that provides you with practical tools to better understand the issues and sources of aid as you apply and work your way through medical school.

If you are interested in finding loan repayment programs to help defray the cost of what you owe in medical school loans, you may be interested in checking out the AAFP's Funding Resources for Practicing in Underserved Areas or the National Health Service Corps (NHSC). Many of these programs appeal to family physicians because they focus on Health Professions Shortage Areas (HPSAs), rural areas and care for medically underserved populations.

The American Recovery and Reinvestment Act of 2009 has allowed for the National Health Service Corps to offer $60,000 to help repay loans for primary care physicians in exchange for two years of service at an approved site in a Health Professional Shortage Area, and more for additional years of service. The NHSC's Loan Repayment Program scholarship cycle generally opens in the fall and closes in the spring.

Also, several organizations have developed their own medical student debt policies and are working to advocate for students’ rights and repayment options:

Association of American Medical Colleges (AAMC) Database of Loan Repayment/Forgiveness Programs -- The AAMC's searchable database includes financial aid programs, scholarships, fellowships, grants, awards, and other incentives to attract and retain medical students and other health professionals.

American Medical Association Medical Student Section -- The AMA-MSS Task Force on Medical Student Debt issued a report in 2003 on the current state of the "medical student debt crisis;" many of their relevant findings are referenced throughout the site.

American Medical Student Association (AMSA) Medical Student Debt Information -- AMSA is working to initiate change and has information on helping to raise awareness of this issue on medical school campuses.

AAMC FIRST for Medical Education -- The AAMC offers Financial Information, Resources, Services and Tools (FIRST) for medical students, residents and even advisors. Fact sheets, repayment examples, and economic hardship deferment calculators are available through the site.