So, how long will it take to pay back?

Jim Dahle, an emergency physician in Utah who has created a popular personal finance blog for physicians, recommends that physicians not take out loans that are greater than 1x (or maximum 2x) their future earning potential

One year of service obligation is incurred for every one year of scholarship funding. Recipients must practice in an eligible field such as family medicine, OB/GYN, general internal medicine, general pediatrics, or general psychiatry. For students unsure if they https://getbadcreditloan.com/payday-loans-ny/webster/ are ready to commit to a career in primary care at the beginning of medical school, the NHSC also offers loan forgiveness programs which students can join after graduation. These forgive up to $50,000 in loans for two years of service at a qualifying site.

Loan Repayment Programs

Students interested in a research career can also consider the Loan Repayment Program (LRP) through National Institutes of Health (NIH). The NIH is the U.S. government’s primary funder of biomedical research, and the LRP is a program designed to encourage physician-scientists to pursue a career in research despite high loan burdens. In contrast to the military HPSP or NHSC scholarships, which prevent students from the need to take out loans by covering in-school tuition and living expenses, NIH LRP funds must be applied for once a student has completed her training and is employed or has a contract to conduct qualified research for at least 20 hours per week.

For example, you could see patients 20 hours per week and spend 20 hours per week in the lab or writing grants. In order to be eligible, you must be a U.S. citizen, national, or permanent resident, and have loans totaling greater than 20 percent of your take home pay. The NIH LRP will repay up to $35,000 per year for eligible applicants.

The Public Service Loan Forgiveness (PSLF) program offers forgiveness for federal student loans after a borrower has made 10 years of eligible payments while working for the federal government or a qualifying nonprofit. Deciding if you are a good fit for PSLF is a complex decision, but fortunately there is also a helpful and detailed post specifically dedicated to PSLF.

Even if you do not feel these programs are a good fit and are concerned about financing your education, don’t let money be the e time, let me reiterate that just because you will be a physician one day does not justify making poor financial decisions. Even with a medical degree, it is still possible to end up in financial trouble, and student loan burdens can be an important contributing factor. In 2018, The Wall Street Journal profiled a dentist with over $1,000,000 in student loans. However, this is a story that can be avoided with careful financial planning and frugal living. Most future physicians can expect to pay off a future loan burden while still providing a comfortable living for their family.

According to MedScape, which conducts a nationwide annual survey of physician salaries, the average physician is paid an annual salary of about $290,000. Taxes will reduce this to a monthly take-home pay (after taxes are withheld from your paycheck) of $15,353 (single) or $17,039 (married) in a state with a median tax burden. With this pay rate, a physician should be able to cover the standard monthly payment of $3,000, which will pay off a loan of $200,000 in ten years (assuming the borrower makes no payments during residency). This is a feasible plan to anticipate, although not all physicians are average and there are many exceptions to this pattern.

For example, some physicians are paid substantially less than $290,000; a pediatrician at an academic medical center might make less than $150,000. Thus, if you plan to pursue pediatrics and expect to earn $180,000 annually, your loans should ideally be less than $180,000 and absolutely no more than $360,000.