Medical school debt continues to be a huge concern for many medical school students. According to the recent report under the Physician Education Debt and the Cost to Attend Medical School, around 73% of the students graduate from medical school with debt which has substantial long-term effects. Moreover, those who do not borrow from medical schools also face big higher education loans after school.
Medical education is increasingly getting expensive, and many students face the challenge of assuming huge debts during their education. The situation may also deter many individuals and families from even considering medical education, which will impact the industry in the future. Managing costs and debt is of utmost importance to get through medical school. Dave Marlin Edwards shares some tips on how to keep down the cost of medical school.
Improving financial literacy
When students are knowledgeable and smart about debt, it is easier for them to manage school debts. That is why medical schools today focus on providing financial literacy training. In some medical schools, students have to attend one on one meetings to discuss finances. The topics may range from loan repayment programs to budgets and expenses. Students also get a chance to meet with professional financial planners to help them set strong financial foundations.
Income-driven loan repayment programs
The traditional student loan repayment programs require students to make repayments depending on the loan they owe. But the income-driven repayment plan by the federal government stipulates that monthly payments should be a percentage of discretionary income, which is more manageable for individuals with student loans. The repayment plan is up to twenty years, after which the remaining loan is forgiven but taxable. Loan repayment options can help you manage your medical school debt in a better and easier way.
Looking for financial aid
From scholarships to grants and fellowships, searching for school financial aid is one way to minimize medical school costs. You can also review college scholarship requirements online and base your applications on the most generous schools.
Keeping the upfront fees low
There is a way students can cut costs during the initial medical school application process. The average application fee is $170 for the initial school and an extra $41 for every additional school one applies. Such costs add up pretty quickly, and one has not even begun studying. According to the Medical School Admission Requirements guide, the best way is to target schools and apply to fewer schools, reducing the travel costs for interviews.
Setting a budget
Students can position themselves up for success by making wise financial decisions and establishing a budget while in med school. According to David Marlin Edwards of Marlin Medical Solutions, medical students should learn to make smart investments, live within their means, and never stop saving. That can help them pay up loans quickly and have a plan for the future. Students who plan and study their options for loan repayment end up getting out of debt the quickest.
The final words
Despite the high cost of medical school, it is one of the most rewarding careers with excellent income potential. You only have to adopt a smart way to manage your debt.