Medical student loan debt, which averages about $200,000, heavily overshadows many of the life decisions doctors make as they complete their training and enter practice. For some physicians, this figure may be a factor in evaluating their first non-resident career.
Naturally, your salary will be a determining factor in your ability to repay your loan in the most efficient way possible.of competitive job marketemployers are also offering another carrot to attract candidates: medical student loan repayments.
For those new and soon to enter the physician job market, here is an overview of some key aspects of employer-sponsored loan repayments.
According to one doctor, it’s the most common hiring incentive offered by employers trying to attract doctors. 2022 report Physician recruitment firm Merritt Hawkins, a division of AMN Healthcare, released a contract or starting bonus. According to reports, these kinds of bonuses were offered in more than 90% of his searches conducted by the company.
In contrast, 18% of Merritt Hawkins searches tracked in the report were for loan repayments, down from 21% the year before. Education loan repayment involves a promise by a recruiting hospital or other institution to remain in the community for a period of time in exchange for payment of a doctor’s medical student loan.
The average loan repayment offered in Merritt Hawkins’ job search was just over $100,000. In return, most applicants (77%) had to stay in the position for her three years.
“Education loan repayment can be a key factor as an incentive for hiring,” said Michael Belkin, divisional vice president of Merritt Hawkins. We can offer robust amounts, smaller systems and private practices also offer loan repayments, but for smaller amounts.
“In all cases, loan repayment is tied to the forgiveness period. Loan repayment is a particularly important part of the overall incentive package for searches in rural and other underserved areas.”
While the number of job openings offering loan repayment was relatively low, Belkin noted that more established doctors are paying off loans in most cases, which could lead to a higher number of young doctors and residents transitioning into private practice. As you continue your journey to become a young doctor, Transition to AMA Practice Series We have guidance and resources on deciding where to practice, negotiating an employment contract, managing work-life balance, and other important tips to get you started.
When family physician Samantha Benz, M.D., was looking for a post-resident job, there were several key factors guiding her search, including job autonomy, culture of practice, and location. When she got bogged down with a few final offers, the one that stood out was where she offered to pay off her medical student loan.
Dr. Benz, who works for Aurora Health Care in Milwaukee, was given $100,000 to pay off a loan in order to commit to two years of service. That incentive was on top of the contract bonus. Both the signing bonus and payments made by her employer for her student loan debt count as taxable income. This is different from loans that are forgiven through the Public Service Loan Forgiveness Program.
“It was really fascinating,” Dr. Benz said. “Once the loan is paid off… basically all my loans are paid off.”
“When I was comparing two positions, one offered medical student loan repayment incentives and one did not.”
Dr. Benz’s loan repayment scholarship was paid out as a lump sum. She said that the amount she received as part of her recruitment incentives was enough to fully repay the loan because she was making loan payments during her residency, which had suspended interest on her government loan student loan. she said.
Dr. Benz, who joined Advocate in mid-October, said: “It’s good to know he’s nearing completion,” he said.
read more about AMA Policy on Medical Education Costs and Student Debtlast updated in 2021. Enabling 401(k) Matches for Doctors Paying off Student Loans and give interest-free reprieve to borrowers About student loans during residency training.
AMA runs Laurel Road preferred provider Helping you navigate your financial future.AMA members refinancing student loansLaurel Road Get an additional 0.25% rate discount through AMA Member Benefits PLUS.
An AMA member interest rate discount of 0.25% is offered on new student loan refinance applications from active AMA members. AMA discounts apply to monthly payments and are reflected on your invoice. The discount will end if her AMA notifies Laurel Road that the borrower is no longer a member. This offer cannot be combined with other member or employee discounts.