Featured Research

from universities, journals, and other organizations

Heavily indebted med students choosing primary care face greater financial challenges

Date:
November 27, 2012
Source:
Boston University Medical Center
Summary:
Researchers have determined that heavily indebted medical students choosing primary care careers will experience difficulty paying their student debt unless they consider alternative strategies to support repayment.

Researchers at Boston University and the Association of American Medical Colleges (AAMC) have determined that heavily indebted medical students choosing primary care careers will experience difficulty paying their student debt unless they consider alternative strategies to support repayment.

These findings appear online in Academic Medicine, the peer-reviewed Journal of the AAMC.

Most medical school graduates have education debt and the average amount of education debt is increasing. In 2011, 86 percent had education debt at graduation, averaging $161,290, the highest total to date. Among these indebted graduates, 23 percent of those at private medical schools graduated with loans of $250,000 or more.

The authors used comprehensive financial-planning software developed by Lawrence Kotlikoff, PhD, professor of economics at Boston University and other economists, to model the annual finances for a fictional physician's household to compare the impact of various debt levels, repayment plans and living expenses across three specialties. To accurately develop this spending model, they used published data from federal and local agencies, real estate sources and national organizations. For their fictional indebted physician, the researchers created three career tracks: one as a primary care physician and two as higher-paying specialists (comparable to physicians in psychiatry or obstetrics/gynecology and in general surgery), each with a comparable starting salary. They analyzed four education debt levels: $150,000, $200,000, $250,000, and $300,000. Among indebted medical school graduates in the class of 2011, in overlapping categories, 59 percent had education debt of $150,000 or more, 33 percent had $200,000 or more, 15 percent had $250,000 or more, and five percent had $300,000 or more.

The loan repayment scenarios they modeled included the standard 10-year plan and the extended 25-year plan. In total, they analyzed 384 different scenarios: 16 repayment plans at four different debt levels for three different career tracks in two different locations (Boston and Denver.)

The models indicate that recent medical school graduates, with the median amount of education debt ($160,000) can enter primary care, raise a family, live in an expensive urban area and repay their debt within 10 years without incurring additional debt. To achieve all of these goals at the $200,000 debt level, however, a primary care physician would need to consider an extended repayment plan and/or a federal loan repayment program, such as income-based repayment or the National Health Services Corps (NHSC). To achieve these goals at the $250,000 or more debt level, a primary care physician would need to consider living in a more moderately priced area and/or choosing an extended 25-year repayment plan or a multi-year commitment to a federal loan forgiveness/repayment program.

The study's economic modeling of a physician's household income and expenses across a range of medical school borrowing levels in high- and moderate-cost living areas shows that physicians in all specialties, including primary care, can repay the current median level of education debt. At higher borrowing levels, even for physicians in comparatively lower-income primary care specialties, there are options to partially mitigate the economic impact of education debt repayment. These options include: an extended repayment term or federal loan forgiveness/repayment program, such as income-based repayment (IBR), public service loan forgiveness (PSLF), and the NHSC. However, extended repayment incurs significant additional interest payments and loan forgiveness programs have restrictions.

"Our results show that student debt levels have become so high that a growing number of students will struggle on a primary care salary alone to repay educational loans and still have enough left over to cover other routine household expenses," notes senior author John Wiecha, MD, MPH, associate professor of family medicine at Boston University School of Medicine (BUSM) and an assistant dean for academic affairs at BUSM.

Lead author James Youngclaus, senior education analyst at the AAMC, adds "Our unique study used real world numbers to demonstrate that heavily indebted primary care graduates must be careful and strategic when making repayment and lifestyle choices."


Story Source:

The above story is based on materials provided by Boston University Medical Center. Note: Materials may be edited for content and length.


Cite This Page:

Boston University Medical Center. "Heavily indebted med students choosing primary care face greater financial challenges." ScienceDaily. ScienceDaily, 27 November 2012. <www.sciencedaily.com/releases/2012/11/121127094243.htm>.
Boston University Medical Center. (2012, November 27). Heavily indebted med students choosing primary care face greater financial challenges. ScienceDaily. Retrieved September 30, 2014 from www.sciencedaily.com/releases/2012/11/121127094243.htm
Boston University Medical Center. "Heavily indebted med students choosing primary care face greater financial challenges." ScienceDaily. www.sciencedaily.com/releases/2012/11/121127094243.htm (accessed September 30, 2014).

Share This



More Science & Society News

Tuesday, September 30, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

How 'Yes Means Yes' Defines Sexual Assault

How 'Yes Means Yes' Defines Sexual Assault

Newsy (Sep. 29, 2014) Aimed at reducing sexual assaults on college campuses, California has adopted a new law changing the standard of consent for sexual activity. Video provided by Newsy
Powered by NewsLook.com
Why Is Big Tobacco Voluntarily Warning You About E-Cigs?

Why Is Big Tobacco Voluntarily Warning You About E-Cigs?

Newsy (Sep. 29, 2014) Big tobacco companies are voluntarily printing health warnings on their e-cigarette packages — a move some are calling part of a PR strategy. Video provided by Newsy
Powered by NewsLook.com
Why Pediatricians Endorse IUDs, Implants For Teens

Why Pediatricians Endorse IUDs, Implants For Teens

Newsy (Sep. 29, 2014) New recommendations from the American Academy of Pediatrics point to intrauterine devices and implants as good forms of birth control for teens. Video provided by Newsy
Powered by NewsLook.com
New Corvette Can Secretly Record Convos And Get You Arrested

New Corvette Can Secretly Record Convos And Get You Arrested

Newsy (Sep. 28, 2014) The 2015 Corvette features valet mode – which allows the owner to secretly record audio and video – but in many states that practice is illegal. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Science & Society

Business & Industry

Education & Learning

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins