By Dimal D. Shah, MD
Assistant Clinical Professor
Division of Child and Adolescent Psychiatry
Department of Psychiatry
Virginia Commonwealth University
Richmond, Virginia
Disclosure: Dimal D. Shah, M.D. is a 2023 recipient of Virginia State Loan Repayment Program (VA-SLRP). He was not asked by any individual or organization to publicly endorse or publicize this program or any loan repayment programs.
Individuals throughout the country aspire to become physicians to treat, and even cure, various ailments. These individuals study countless hours, conduct research, and participate in extracurricular activities ranging from sports to organized clubs to humanitarian service in hopes to receive an acceptance letter from a medical school admissions committee. The dream of becoming a physician turns into reality for some individuals. But at what financial cost?
Many students entering medical school have debt from undergraduate education or graduate school they completed prior to entering medical school. A four-year medical school costs approximately $230,000 on average.1 This amount varies based on in-state versus out-of-state tuition, as well as private versus public schools. Approximately 70% of medical school students take out loans to pay for medical school.2 These loans accrue interest from the initial date of disbursement and undergo capitalization, where unpaid interest becomes part of the principal amount. The interest is now on the new and larger principal. It is not uncommon to hear students graduating medical school with over $300,000 in medical school loan debt. Unfortunately, this is the new reality.
These newly minted physicians are not earning their full income potentials for at least another three to ten years depending on their specialty training requirements. To practice medicine, physicians are required to undergo three to five years of residency training and an additional one to three years of fellowship training. Some physicians may obtain super-fellowships, which is another one to two years. During these years of training, they are required to pay back their student loans. Many enter Public Student Loan Forgiveness programs from the federal government or refinance into private loans with lower interest rates. These loans become financial burdens on physicians trying to join a medical group, start a new medical practice, start a family, or buy their first home. The hidden financial cost of becoming a physician in 2023 in America is medical student debt.
To help alleviate this burden and recruit physicians to underserved areas of the Commonwealth, Virginia participates in a federal grant from Health Resources Services Administration (HRSA), Bureau of Health Professions. Virginia State Loan Repayment Program (VA-SLRP) provides up to $140,000 in student debt relief for four years of service in a Health Professional Shortage Area (HPSA) within the Commonwealth.3 Awardees can receive a maximum of $100,000 split over the first two years of service and a maximum of $40,000 split over the third and fourth years of service. Applicants must commit to two years at a time. Another similar program is Virginia Behavioral Health – Student Loan Repayment Program (BH-SLRP), which is funded by the 2021 General Assembly.4 BH-SLRP is a loan repayment program specifically for behavioral health clinicians, including psychiatrists.
Whether physicians enroll in VA-SLRP or BH-SLRP, these types of programs have dramatic impact on physicians’ student debt relief. They also incentivize physicians to relocate to and stay in Virginia to provide medical care to Virginians. Student Loan Repayment programs, like Virginia State Loan Repayment Program and Behavioral Health Student Loan Repayment Programs, are beneficial to physicians, aspiring physicians, physicians’ families, and physicians’ patients and their families, as well as the health of all Virginians.
Citations:
- Hanson M. Average Cost of Medical School. EducationData. Published October 11, 2021. https://educationdata.org/average-cost-of-medical-school
- Hanson M. Average Medical School Debt [2020-21]: Student Loan Statistics. EducationData. Published September 8, 2020. https://educationdata.org/average-medical-school-debt
- Virginia Loan Repayment Programs. Health Equity. https://www.vdh.virginia.gov/health-equity/virginia-loan-repayment-programs-2/
- Virginia Behavioral Health Student Loan Repayment Program. Health Equity. https://www.vdh.virginia.gov/health-equity/virginia-behavioral-health-student-loan-repayment-program/
