Are you in search of medical school loan forgiveness programs for doctors? Look no further; you are in the right space!
While working in the medical field can be financially rewarding, becoming a doctor can require expensive schooling.
There are numerous medical school loan forgiveness programs available to help reduce or even completely erase your debt if you have a significant number of debts.
This article explores the best medical school loan forgiveness program that you can qualify for as a doctor. In order not to miss out on valuable information we have curated for you, ensure to read to the end of this article.
What is Medical School Loan Forgiveness?
Medical school loan forgiveness is a program that helps to alleviate the financial burden of medical students who took out a loan and find it difficult to repay.
The purpose of establishing medical school loan forgiveness is to help eliminate some or even all of a doctor’s outstanding loan in order to attract students to medical schools.
The majority of medical students take out a substantial amount of loan to cater for the cost of higher learning and, in most cases, find themselves in a rough situation due to their inability to pay it back. So, medical loan forgiveness is there to offer help in situations like this.
6 Best Medical School Loan Forgiveness Programs for Doctors
There are numerous loan forgiveness programs out there, but there are some that are considered the best out of all. In this section, we would be looking at six distinct medical school loan forgiveness programs that you can qualify for as a doctor. They are enumerated below:
1. Armed forces loan repayment programs
Coming first on the list of the best medical school loan forgiveness programs for doctors is Armed Forces Loan Repayment Programs. This program is eligible for physicians who take out a federal or private loan, and the maximum forgiveness amount it offers is $40,000 per year, which is up to a maximum of $250,000.
However, Armed Forces loan repayment programs have their own unique eligibility criteria; you have to be enlisted as a commissioned officer in order to qualify for this program. In addition to that, you will be required to sign a written agreement that shows that you agree to the terms of the forgiveness program.
2. Health resources & services administration (HRSA) pediatric specialty loan repayment program
This is our second pick for doctors who are seeking top medical school loan forgiveness. The HRSA Pediatric Specialty Loan Repayment Program is designed for pediatric physicians, surgeons, or child and adolescent psychiatrists who meet the program requirements. This loan forgiveness program offers a maximum amount of $100,000 for three years.
3. Indian health service (IHS) loan repayment program
Indian Health Service (IHS) Loan Repayment Program is another outstanding medical school loan forgiveness program for doctors who seek relief from debts. Whether you took out a federal or private loan, you may still be eligible for the Indian Health Service Loan Repayment Program.
This program offers a maximum forgiveness amount of $25,000 per year. To give back, doctors are required to work full time in a health care facility administered by Indian Health Services (HIS) or other equivalent authorities.
4. National health service corps (NHSC) loan repayment program
The National Health Service Corps (NHSC) Loan Repayment Program offers a forgiveness amount of $50,000 over to doctors with two or more years of service in a designated health professional shortage area.
To qualify for this loan forgiveness program, you must be an adept physician in these fields: family medicine, obstetrics/gynecology, general internal medicine, geriatrics, general pediatrics, and general psychiatry.
5. Public service loan forgiveness (PSLF)
The PLSF program offers loan forgiveness amounts up to 100% of the remaining balance of your loan. This forgiveness program provides assistance to employees of nonprofit organizations and government-oriented agencies.
The only difference between public service loan forgiveness and other types of loan forgiveness programs is that the loans that are erased under it are not taxable as income.
6. National institute of health (NIH) loan repayment program
Another best medical school loan forgiveness program is the National Institute of Health (NIH) Loan Repayment Program. You can get your loan reduced or completely erased even if it is gotten from a federal or private entity.
This program offers a maximum forgiveness amount of $50,000 per year to doctors. Nevertheless, you have to be committed to working as a researcher for NIH or another qualifying research organization in order to be eligible for this loan forgiveness program.
Alternatives to Medical School Loan Forgiveness Programs
Yes, medical school loan forgiveness is a great option for doctors who find themselves in huge debts, but there are other ways you can still pay off your medical loans without having to opt for medical school loan forgiveness. Some of which include;
Student loan refinancing
In a situation where you have an outstanding student loan that features a high rate, you can still be able to pay off your student loan if you refinance. Most lenders may be willing to allow you to refinance your loan to pay the previous one you owed.
Perhaps you have a good to excellent credit score and a reliable source of income; there’s a huge tendency to qualify for a lower rate. In addition, you can also reduce your overall repayment cost if you refinance your student loan.
Employer repayment programs
You can take advantage of employer repayment programs offered by hospitals, clinics, and healthcare companies to pay off your debt faster.
A lot of health care facilities offer student loan repayment assistance benefits to attract workers. If you qualify for this benefit, your employer can decide to match your monthly payment up to an amount you need to repay your student loan.
How to Apply for Medical School Loan Forgiveness Programs
Find Out the Type of Loan You Have
The first step to applying for the loan forgiveness program is to determine what type of loan you have. This would help you choose the right program that suits your needs.
Some medical school loan forgiveness accommodates federal and private loans, while others accept specific loan types. You can find out if you have a private or federal loan by viewing your credit reports.
Review the requirements for the program
Most medical loan forgiveness programs have their own specific eligibility requirements and application process. Understand the program requirements to be sure you are eligible to receive the benefits attached.
Fulfill payment and work obligations
Any loan forgiveness or repayment assistance programs expect you to manage and keep up with your repayment plan for the loan you took out. Until the service commitments are completed and funds are sent to you, you are responsible for keeping track of your loan amount.
Maintain good records
This is by far the easiest way to qualify for a medical school loan forgiveness program. Most times, it takes years to qualify for loan forgiveness, depending on the program. If you have a good record attested by your lender or place of work, it can expedite assistance from loan forgiveness programs.
