7 Easy Ways To Pay Off Medical School Debt

The Medical school debts are a huge burden for many of the physicians but if you can manage or optimize your student loan so as to give you an edge on controlling your outflow of money in paying off your debt amount and loan interest

Updated by Annany Sah on 23rd January 2020


Student Loans can be a good way to start off a year if you are fresh out of school at a good college because it gives you the privilege to get into your desired college to pursue your studies.

Medical school student debt is a burden that follows many physicians well into their career. Fortunately, there are sound financial strategies that can help you pay your debt off more quickly and reduce the overall amount you'll end up paying and to do that you have to optimize your way of doing things so you can pay off the debts very easily in the following ways such as Understand your options,Learn how other physicians are paying off debt,Know when and where to get help.This way it will be easy for you to get to know your specialty and where you can make the most of the money to pay off your debts.

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What are Medical School Loans?

A medical loan is a personal loan that’s used to pay for medical expenses.A number of lenders offer personal loans that can be used for medical treatment.Medical loans may be unsecured personal loans, meaning they don’t require any collateral. Since lenders are trying to judge your ability to repay the loan, applications for these types of personal loans will primarily focus on factors such as your credit history and income.You can also apply for a secured personal loan to help pay for medical expenses. Secured personal loans require you to put up collateral to secure the loan, but you may be able to get more competitive rates.

The amount you’re approved to borrow and the terms of the loan will depend on a variety of factors, including your credit history.

There are many ways you can pay off medical school debts without getting into deep interest amounts debts

Paying off medical school debt can be a bitter pill. As a resident, you’re probably not earning enough to make full monthly student loan payments. Then you are in luck because there are some ways you can pay off your debts very easily.

7 Easy steps to pay off Medical School Debts

There are few ways you can pay off your debts easily which are as follows:

 1. Making payments while in Residency 

Medical school loans accrue interest while you’re in school and typically enter repayment six months after you graduate.

It’s possible to postpone student loan payments during your residency or fellowship, but it will cost you. Interest accrues during periods of deferment and forbearance, increasing your total balance.

2. Switch to Income driven Payments

As mentioned above, you may struggle to afford the monthly payments on your medical school debt during residency. However, an income-driven repayment (IDR) plan can help. Income-driven repayment plans could result in lower monthly payments for residents with high medical school debt.

The repayment option offers a subsidy on your student loan interest. Essentially, the federal government will cover 50% of all interest due above the monthly payment amount throughout unsubsidized loan repayment. This subsidy can yield significant savings over the life of the loan and could help you pay off your medical school debt faster.

3. Seek Loan Forgiveness

Student Loan Forgiveness is a best way because it will help you to get a forgiveness on your loan debt payment that means that you don't have to make the rest of the payment if you have made a certain amount of payment 

Public Service Loan Forgiveness (PSLF) is the quickest way doctors can pay off medical school debt. Federal student loans are discharged after 10 years if you work for a nonprofit hospital or medical facility.Enroll in the PAYE repayment program to keep your monthly payments as low as possible and maximize the amount forgiven. After 120 monthly payments, the remaining loan debt is forgiven.This program was revoked or removed by trump ‘s government in 2018.


Student loan refinancing is likely the best option for doctors paying off medical school debt aggressively. If you can get a lower rate, you could save thousands of dollars in interest over the life of your loan.

Physicians are typically ideal candidates in the eyes of student loan refinance lenders. Qualifying for the lowest rates requires excellent credit and a high income relative to your debt.

You have two options for refinancing medical school loans:

  1. Go on income-driven repayment during residency and refinance after you complete your training.

  2. Refinance during residency and potentially again when you complete your training.

5.Make extra student loan payements

Paying extra may be tough for you to do right out of medical school or while in residency.But once you can afford to, making extra payments on student loans can help you pay off your medical school debt faster. Not only does it shorten your repayment term, but it also lowers the amount of student loan interest you’ll pay. Ultimately, your debt will cost you less.Take some time to project your own savings from prepaying student debt with this calculator and see if this is a beneficial strategy for you.

 6. Keep Living Like a Resident

To keep up with extra payments on medical school debt, you need to make them a top financial priority. That means keeping your living expenses and discretionary spending low. Even though you’ll be making a better salary once you’ve completed your training, you might consider continuing to live like a resident.In other words, make the most of your doctor’s salary as an attending by keeping your lifestyle in check. You’ve probably already been doing that as a resident, so try to keep it up for the next few years.

Ultimately, if you can spend like a resident while making three times more (or higher) as an attending physician, your expenses will comprise a smaller portion of your take-home pay. This will help you devote a more substantial portion of your income to paying extra on your student loans.

 7. Apply For physician Bonuses

Physician signing bonuses are common benefits offered to attract doctors. In fact, more than 80% of physicians received signing bonuses in 2018.If you can snag one of these bonuses, it could go a long way toward paying off your medical school debt. Throwing this lump sum at your loans can shorten your repayment period and save you money in interest payments.So, before you spend your signing bonus, use this extra payment calculator to see the impact it could have on your financial future. 


As a recent medical school graduate, you might be anxious to get rid of your student debt. You might feel overwhelmed and unsure of the best path forward. Plus, finding the time and mental energy to tackle your student loans on top of practicing medicine can be challenging.However, keeping your medical school debt repayment a top priority can take years off your loans. Plus, you’ll save thousands of dollars in interest. Though it can seem time-consuming to manage your student loan payments, your wallet will thank you in the long run.