Exploring Medical School Loan Forgiveness Options
Attending medical school is a major commitment and investment in your career—not just time wise, but financially as well. If someone took on a lot of medical school debt to pursue a career as a physician, they may be wondering what their loan forgiveness options are.
Let’s look at some of the more common options that physicians have for getting their medical school student loan debt forgiven.
What are Student Loan Forgiveness Programs?
Usually, student loan forgiveness programs are sponsored by national, state, and local governments, but some private organizations offer these types of programs as well.
There are a few ways that student loan forgiveness programs can be structured, but for medical school debt these programs most often involve working in an underserved community or field for a certain period of time in order to get some or all student loan debt forgiven after graduating. For example, because there is a high need for primary care physicians, student loan forgiveness programs in this field are more common.
Usually, after completing a residency physicians can practice in designated health professional shortage areas (HPSAs) for a few years (usually two to four) in order to get help with the repayment of their medical school loans. They also receive a living stipend.
Government Loan Forgiveness Programs
While your search for the right student loan forgiveness program will need to be more extensive than this, these are a few government loan forgiveness programs worth looking into. These examples will give you an idea of what types of opportunities are available and how these programs work.
Indian Health Service (IHS) Loan Repayment Program
The IHS Loan Repayment Program grants awards up to $40,000 to repay student loans if the physician commits to practicing in health facilities serving American Indian and Alaska Native communities for two years.
National Institute on Minority Health and Health Disparities
This program focuses on developing research programs that reflect an understanding of the variety of issues and problems associated with disparities in health status in exchange for student loan repayment assistance.
National Health Service Corps (NHSC) Loan Repayment Program
Through this NHSC student loan repayment program, you can qualify for up to $50,000 toward loan repayment if you are a licensed health care provider and commit to working for two years at an approved site.
NHSC Students to Service Loan Repayment Program
If you’re a medical student, you may earn up to $120,000 in your final year of school if you agree to a commitment to serve for at least three years at an approved NHSC site in an HPSA community.
Public Service Loan Forgiveness (PSLF) Program
This program only applies to federal student loans, but the PSLF Program forgives the remaining balance on an individual's Direct Loans after you make 120 monthly payments under a qualifying repayment plan. You have to work full-time for a government or not-for-profit organization during this time period.
Need help making a plan to pay off your student loan debt? We’re happy to work with you to get an action plan in place that helps you work towards your financial goals.