By Sean Rumney, Maryann England, Ashley Chakales

The Rise of Medical Student Debt:

What are the Options and Opportunities for Students?

By Sean Rumney, Maryann England, Ashley Chakales

The burden of student debt in the United States is an issue that has far-reaching implications. Outstanding student loan debt in the nation is over $1.7 trillion, with 92.6% of this provided by federal student loans. The COVID-19 pandemic and its corresponding relief efforts have offered a brief respite for many students. Since 2020, the rate of increase of the total national student loan debt has declined significantly. This slowing of the rate of student debt acceleration is attributable to the Coronavirus Aid, Relief and Economic Security (CARES) Act signed into law on March 27th of that year.1 Additionally, Texans have the advantage of a comparatively low average debt at graduation of $26,273 as of the 2020 graduation year, it ranked the 11th lowest in the nation. In this environment, students are entering postgraduate programs and should be looking to safeguard themselves against future financial hardship using the resources at their disposal.2

Medical students can build up a staggering amount of educational debt which dwarfs the average debt of undergraduates, with the median of indebted graduates at $200,000 as of 2020. A small but significant minority of physicians will never pay off what they borrow during their four-year postgraduate education. Few students have the resources to pay their way without the help of federal loans, and therefore the goal shifts to minimizing the amount a student needs to borrow. This might be achieved with grants or scholarships. Alternatively, students might choose to pursue loan forgiveness programs or military service. Early efforts to curb the snowballing of student debt have a significant downstream effect on the lifestyle and wellness of students post-graduation, especially when repayment for many will be years in the future.

Grants:

Grants are a way medical students can cover costs in medical school. Grants can cover travel, housing, conference registrations and other items applicable to your work. There are various avenues to find grants to apply for. A good place to start is with your specialty of interest. Attending interest group meetings allows you to hear from other students and mentors about what opportunities and projects exist and how to go about establishing your own or applying for one. For example, the Family Medicine Interest Group (FMIG) discussed the Texas Family Medicine Preceptorship Program (TAFP), a program that provides the opportunity to gain experience with a skilled family medicine physician in a community setting. Stipends are available to students ranging from $2,000 -$5,000 depending on the length of the preceptorship and the type of community you serve. Other specialties, such as pediatric and internal medicine, offer similar programs for medical students. This provided a great resource to explore a particular field without the stress of living costs. Additionally, many state and national medical societies offer grants for research electives. One can find these by looking up an organization in their field of interest and searching their website for mentorships or research fellowships.

Scholarships:

Applying to scholarships does not end at the undergraduate level. Many Medical students would be surprised to learn that countless scholarships are available to them as they continue their education. One of the first steps in applying to scholarships is completing the free application for Federal Student Aid (FAFSA). This is a requirement for many scholarships within your institution. Secondly, apply for scholarships within your school. The school you attend likely

sends emails about available scholarships that many students overlook. Most scholarship application processes are fairly short and straightforward. Applying to outside scholarships requires more effort to find them and to check if you meet the requirements. These types of scholarships tend to have more specific criteria, but they are still worth applying to if you are eligible.

Military and Loan Forgiveness Programs:

Beyond minimizing loans through grants and scholarships, students should explore loan forgiveness programs to see if these align with their career goals. A frequently chosen path for loan forgiveness is through the Health Professions Scholarship Program (HPSP), offered by the US Army, Navy and Air Force. This is available for students in medical and dental programs and offers full coverage of tuition along with a monthly stipend. This program is contingent on one year of military service for each year the scholarship is used.

As an alternative to military service, there are loan-forgiveness programs post-graduation offered by philanthropic organizations in exchange for a commitment to practice in underserved areas, for example, The National Health Service Corps (NHSC) Rural Community Loan Repayment Program (LRP). This Loan repayment program is offered to licensed providers who agree to work in specific rural communities to combat the opioid epidemic. Many medical students enter this training with the only goal to service vulnerable and at-risk populations. This program offers loan forgiveness to practice in a field in which they are already highly motivated to work.

Sean Rumney, Maryann England, and Ashley Chakales are medical students at the UT Health San Antonio Long School of Medicine.

References 1.Hanson, M., & Checked, F. (2022, May 30). Student Loan Debt Statistics [2022]: Average + total debt. Retrieved July 19, 2022, from https://educationdata.org/student-loan-debt-statistics#:~:text=

The%20nationwide%20total%20student%20loan,on%20their%20st udent%20loan%20payments 2.Acknowledgements - the Institute for College Access and Success. (n.d.). Retrieved July 19, 2022, from https://ticas.org/wpcontent/uploads/2021/11/classof2020.pdf 3.Physician Education Debt and the Cost to Attend Medical School 2020 Update. (n.d.). Retrieved July 19, 2022, from https://store.aamc.org/downloadable/download/sample/sample_i d/368/