Through avenues like scholarships, grants, and student loans, there are multiple ways to fund your medical education as you work toward becoming a doctor. But once you graduate, the reality of paying off your med school loans will begin to sink in.  

Before you get too bogged down by the idea of the monthly bills that await, you should know that there are a number of different ways you can make the process of paying off medical school loans more manageable. Take a look at some common options.  

Things to consider when repaying medical school loans 

The mounting physician shortage in the US suggests there will be a continued need for qualified physicians in the coming years. Once you are licensed to practice, you can pursue one of these positions and begin earning a steady income. 

But you won’t have to rely on your paychecks alone when it comes to paying off medical school loans. Many doctors use the following methods to assist in their loan repayment process: 

• Income-based repayment plans allow for a reduced monthly payment on most US federal student loans. These payment plans cap loan payments at 10 or 15 percent of your discretionary income. The monthly payment is adjusted annually and verification of your income and family size is required each year.  

• Deferment and forbearance refer to “grace” periods after graduation during which no loan payments are due. Deferment is a temporary suspension of loan payments. That said, eligibility can be somewhat restrictive. Those who are ineligible for deferment may qualify to receive a forbearance— a period of time in which you can either make payments lower than those previously scheduled or delay making payments completely while interest still accrues.  

It’s helpful to note that as a medical resident, you are entitled to a mandatory residency forbearance that can be used to postpone your payments throughout residency. To qualify, you must clearly identify yourself as a medical resident and complete the required paperwork. 

• Debt consolidation is a useful option for those dealing with multiple loans and servicers. Consolidation can simplify repayment by providing one loan, one servicer, and one payment. One of the most prominent benefits of this repayment route is that it provides a single monthly payment, most times with a reduced monthly payment 

• Refinancing is an avenue available to graduates with good credit. Eligible candidates may be able to refinance their existing federal student loans into a private loan. It’s important to note that there are several different variables that will help determine if refinancing is a sensible option for you. The Association of American Medical Colleges (AAMC) has provided the following resource if you’re looking for assistance in evaluating your specific circumstances.

• Student loan forgiveness is also available through some federal programs for physicians who aspire to work in the public service sector. In addition to a few other requirements, borrowers must be employed full-time in a qualifying public service position during the period in which they made 120 monthly payments.  

In other words, physicians who are employed by a qualifying government or nonprofit organization, make all their payments for 10 years, and meet a few other criteria can become eligible to have the remainder of their debt forgiven.  

Pay off your med school loans with confidence 

You now know some of the most useful methods for paying off medical school loans. But with so many minute details, it can still be hard to grasp it all. Many medical students find it helpful to hear how other physicians have managed it.  

Learn about the process firsthand by visiting our article “SGU Alumni Dish on What Paying for Medical School Is Really Like.”