Many college students graduate with thousands in debt. When you add medical school the loan amounts continue to increase. It may not be a surprise that medical professionals exit residency with high debt, but do you know just how much paying off their loans impacts them?
Here are three things you may not have realized about physician and advanced practice provider debt.
Over half of residents currently practicing have taken on debt. According to the Association of American Medical Colleges, indebted medical school graduates owe an average of $200,000, with 73% of graduates reporting having education debt. With interest rates, that amount of money consistently increases and can become more difficult to pay off over time.
Some of your candidates may have chosen their specialty based specifically on potential salary or the amount of loans required for their training. This can take away from physicians choosing their career path to follow their passion.
This may also keep physicians from going into practice for themselves if they cannot afford to own a practice due to loan payments.
There are professionals who can talk to prospective candidates about student loan options. They are a third party and do not have an agenda; their main purpose is to help physicians save money. Loan counselors are well versed in various types of loans, laws, taxes, interest rates, lenders and more.
It’s important to talk to your candidates about student loans and financial concerns. Without initiating this discussion, they may not be open about their challenges; they could either be taking the position for some of the wrong reasons, worried about balancing lifestyle with large monthly payments, or possibly not fully invested in the role itself because they’re nervous about saving or making money to offset debt.
Understanding loans and the benefit of a student loan counselor could set you apart from your competition and earn trust with your candidates.