The average medical school debt ranges from $200,000 for public school graduates to $215,000 for private school graduates. This is according to Association Of American Medical Colleges 2019 data. Using the traditional approach to loan repayment, this may take you ten to twenty years to pay off.
But, you do not have to pay back a dime. You can get your medical school loans forgiven in two years.
There are programs for doctors to repay their student loans in as little as two years. To elaborate, these programs are sponsored by the American federal, state, local and tribal governments. The aim is to reduce the burden of medical school graduates paying back student loans, in return for their service in Health Professional Shortage Areas (HPSAS).
HPSAS are areas in the United States of America with health professionals shortage. What the government does, is to send in newly medical school graduates to work in these areas. You serve there for a few years, while the government repay your loan for you. Usually, the contract has an average of two years.
With that said, here are some fantastic medical student loan forgiveness programs. These can reduce your huge medical student debt to $0.
1. The NHSC Loan Repayment Program
The National Health Service Corp (NHSC) is a government organization responsible for connecting health professionals to areas with health clinicians shortage. In other words, they put primary health care personnels in areas within the United States with high medical demand and low health personnel supply. In return for this service, you will get your student loans forgiven by the federal government.
How Much Is the NHSC Stipend?
It depends on the type of program you choose. There are three program types. Namely: NHSC loan repayment program, National Health Service Corp SUD workforce and NHSC Rural Community loan repayment program. It is worthwhile to mention SUD stands for Substance Use Disorder.
Below, here is what you need to know about these three program types.
| National Health Service Corp Loan Repayment Program | NHSC SUD Workforce Loan Repayment Program | National Health Service Corp Rural Community Loan Repayment Program | |
|---|---|---|---|
| Shift | Full time / Part time | Full time / Part time | Full time / Part time |
| Loan Repayment Award | Up to $50K / Up to $25K | Up to $75K / Up to $37.5K | Up to $100K / Up to $50K |
| Contract | 2 Years Contract | 3 Years Contract | 3 Years Contract |
| Placement | Approved Sites | Approved SUD Sites | Approved Rural And SUD Sites |
As can be seen from the table above, you have the option to choose from three programs. Then, you can see which one you qualify for. The best part of the contract is it is renewable, until you pay off your medical student debt. This is especially, when you work part-time for them.
Here, part-time means at least 20 hours per week during a 48 week per year work schedule. Full time is considered at least 40 hours per week in the same number of weeks per year. There is little difference in specialty though. Click here for more information on this.
What Specialty Qualifies For NHSC Loan Repayment Program?
These are the specialties, which qualify for this medical student debt forgiveness program. You can qualify, if you are one of these health professionals.
- Nurse Practitioners
- Physicians (Doctor of Medicine or Doctor of Osteopathic Medicine)
- Mental and Behavioral Health Professionals
- Physician Assistants
- Registered Dental Hygienist
- Dental Doctors (DDS or DMD)
Moreover, you have to be a U.S national or citizen to qualify. While some loan repayment programs are taxed as federal income, NHSC loan repayment award is not. So, you can get your medical school loans forgiven quickly through this program.
Finally, in order to apply for NHSC loan repayment, click here. For its SUD Workforce loan repayment program, click here. Otherwise, click here for the Rural Community loan repayment program.
2. The IHS Loan Repayment Program
The IHS is the Indian Health Service. It is a federal health program for Native Americans and Alaska Natives. If you are chosen for this kind of medical student debt forgiveness program, you can get up to $40, 000. In return, you are to serve in an approved Indian health facility.
Besides this honor, you can renew this contract every year until your medical student loan debt is paid off. Here are what you need to know about the requirements and qualifying specialties.
Firstly, you have to be a U.S citizen to apply. While under this program, you cannot receive any loan repayment award from other loan forgiveness programs. So, you have to commit to this loan repayment program.
Additionally, you have to be in your final year with a license to practice. By final year, the program refers to final year of post-graduate clinical training or residency. Otherwise, you will not qualify for this program.
Finally, the commitment is two years. As mentioned earlier, you can renew this contract every year until you pay off your medical student debt. To apply for this loan repayment, click here. Also, this link will help you with any information you may have.
3. The NIMHD Loan Repayment Program
The National Institute On Minority Health and Health Disparities is a medical student debt forgiveness program. It is a research program. The program is open to health professionals with doctorate degrees. These degrees include M.D, D.D, Ph.D and Dr. PH. It is a great program for American Minorities, since it is very inclusive.
Besides, it is a medical school loan forgiveness for underserved areas.
For other doctorate degrees which may qualify, click here for more information. With that said, here are other things you need to know about the NIMHD loan repayment program.
The NIMHD loan repayment program is classified into two groups.
These two groups are called NOT-OD-21-141 and NOT-OD-21-142 respectively. The NOT-OD-21-141 is a health disparity research with focus on clinical, social science, behavioral and health services. Furthermore, a congressional medical student loan forgiveness bill mandates 50% applicants to come from a health disparity population.
On the other hand, the NOT-OD-21-142 is for researchers from financially disadvantaged background. Simply put, health professionals from poor backgrounds and low economic opportunities. With this particular group, you can work directly with patients while doing your research.
In addition, the NIMHD LRP is one of the best ways to get your medical school loans forgiven. The requirements are not bad at all. You have to be a U.S citizen or national. Also, your student loan debt must be about 20% of your salary. For more information, refer to the previous link below the researcher’s photo.
Finally, the loan repayment award pays up to $50, 000. Your contract with this program is for two years only. The best part of it is, you only get to work 20 hours weekly. To apply, click here.
4. The Public Service Loan Forgiveness
If you borrowed direct loans for your medical school, PSLF will forgive your remaining balance. To elaborate, you have to already be making payments on the debt before PSLF can come in. You will need to make 120 monthly payments.
After that, PSLF will take over. That is, if you qualify for it.
Anyways, this loan forgiveness program has strict requirements. Firstly, this is for graduates working for federal, state, local or tribal governments in the United States. Also, working for a non-profit organization can make you eligible.
Not only working for these groups, but also you are expected to work full-time there. This is besides making full monthly payments per your direct loan repayment agreement, prior to application. For more information about this medical school debt forgiveness program or how to apply, click here.
5. The NHSC Students To Service Loan Repayment Program
The NHSC S2S LRP is another one of NHSC medical school loan forgiveness programs. Its sole purpose is to provide service to areas with limited healthcare. This is what it considers as its primary mission.
To differentiate from other NHSC loan repayment programs, it is called NHSC S2S LRP. It is open to medical professionals with degrees in allopathic or osteopathic medicine, nursing, physician assistance or dentistry. Click here for more information about other eligible specialities.
In addition, you have to be a U.S national or citizen. Prior to your application, your medical school graduation has to be in same year as your application. Besides these, the requirements are similar to the NHSC Loan Repayment. You have to serve in Health Professional Shortage Areas (HPSAS) to get loan forgiveness for medical student loan debt.
As for the medical school loan repayment award, you will get up to $120, 000. With respect to this amount, it is a summation of the amount you may get during your contract duration. This is up to $30, 000 per year. And, your contract is for three years.
However, you can apply to renew it. This is in case you were unable to get all your medical school loan paid off by contract end. During your three years there, you will work at least 40 hours per week in a 45 week per year work schedule. For more information about FY 2022 NHSC S2S LRP, I have attached a piece of document. Click here to access.
6. The Health Professions Loan Repayment Program (HPLRP)
The HPLRP is a military incentive for active military health professionals. You can get at most $40, 000 per year as student loan forgiveness in medical fields or any health profession.
However, this loan repayment is considered an income. So, there is a federal tax rate of 25% on it. Do not worry though. The government deducts the tax, before awarding it to you.
To qualify for this government medical school loan forgiveness, you have to be a commissioned officer. Or, one who is going to be commissioned soon. Besides, you cannot be in any other Health Professional Shortage Area (HPSA) program.
For more information about this loan repayment program, please click here. The link contains everything you need to know about the program. This includes who to contact, in case of additional questions.
To sum up, you can reset your medical student debt back to $0. It is my hope these resources will help you graduate medical college debt free. When you do, help me continue to make a difference in the world by charging reasonably for your medical service.
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