Medical school can lead to a satisfying and rewarding career in healthcare, but it comes at a cost. According to the Association of American Medical Colleges (AAMC), the median cost of attendance of four years at a public, in-state medical school was $297,745 in 2025, while the median cost of attendance at a private medical school was $408,150.
For medical school graduates with high student loan balances, federal and state student loan forgiveness programs can eliminate a large portion of your balance. However, some programs, such as Public Service Loan Forgiveness (PSLF), restrict where you can work.
Here’s what you need to know about student loan forgiveness and its impact on your healthcare career options.
Key Takeaways
- The majority of medical school students leave school with student loan debt. If you’re still deciding on what type of student loans are a good fit for you, the limitations of federal student loan debt repayment may be worth considering.
- On average, medical school graduates have over $220,000 in outstanding loans, according to the Association of American Medical Colleges (AAMC).
- Student loan forgiveness programs can provide relief, but they may limit your career options.
Loan Forgiveness for Healthcare Professionals
With 70% of medical school graduates leaving school with student loans, it’s no surprise that loan forgiveness is a hot topic. Depending on the type of loans you have, you may be eligible for loan forgiveness through the federal government, your state, or through research institutions.
However, loan forgiveness programs for doctors and healthcare workers usually have strict eligibility requirements, and you usually have to commit to working for a certain period at a particular facility or in a specific area.
While you’re working toward loan forgiveness through the following programs you can’t go into private practice or work for a for-profit corporation, so it can impact your career path and earning potential:
| Maximum Loan Forgiveness | Eligible Professions | Employment Restriction | Location Restriction | |
| Public Service Loan Forgiveness | 100% of the remaining loan balance after 10 years of qualifying employment and 120 qualifying payments | All non-profit or government agency employees | Yes | No |
| Income-Driven Repayment Forgiveness | 100% of the remaining loan balance after 20 to 25 years of qualifying payments | All professions | No | No |
| National Health Service Corps Loan Repayment Program | Up to $75,000 for full-time primary care providers for a two-year service term | MD DO DDS DMD | Yes | Yes |
| State Programs | Varies by program | Varies by program | Yes | Yes |
Public Student Loan Forgiveness (PSLF)
Restriction: Employer
PSLF is a program for federal student loan borrowers. You can qualify for loan forgiveness for your remaining balance if you work for a qualifying employer full-time for 10 years and make 120 qualifying monthly payments.
For PSLF, a qualifying employer is a non-profit organization or government agency, so you can work at non-profit hospitals, community healthcare clinics, or government agencies and qualify for loan forgiveness.
Although you aren’t limited to a particular specialty or location, PSLF does affect your employer options. If you leave a qualifying employer and go into private practice or work for a for-profit institution, you won’t qualify for PSLF. Non-profit agencies and government offices tend to pay lower salaries than private corporations, so pursuing PSLF is a significant, 10-year commitment. And
Income-Driven Repayment (IDR) Plans
Restriction: Income
IDR plans are an option for federal student loan borrowers. Best-suited for those who cannot afford their payments under a 10-year standard repayment plan, IDR plans base your payments on a portion of your discretionary income. Depending on the plan, you could be in repayment for 20 or 25 years.
If you have a balance at the end of the loan term, the government forgives the remaining amount.
There are no employment restrictions for IDR plans; you can work for any for-profit, non-profit, or government agency, and you can even qualify if you’re self-employed in private practice.
National Health Service Corps (NHSC) Loan Repayment Program
Restriction: Location, employer, and specialty
Loan repayment assistance programs work differently from loan forgiveness programs. While loan forgiveness programs require 10 years or more of payments, loan repayment programs give you loan funds after just one or two years.
The NHSC loan repayment program is designed to recruit doctors to work in areas with shortages of healthcare workers. Those who commit to working in designated health professional shortage areas (HPSAs) can qualify for up to $75,000 in loan repayment assistance for a two-year, full-time service commitment.
Only doctors who are primary care providers are eligible, and must have one of the following degrees:
- Doctor of Medicine (MD)
- Doctor of Osteopathic Medicine (DO)
- Doctor of Dental Medicine (DMD)
- Doctor of Dental Surgery (DDS)
State-Based Loan Repayment Programs
Restriction: Location, employer, and specialty
With state loan repayment programs, the state will give you a lump sum to repay your loans in exchange for committing to work in high-need areas. You can usually use the money to repay both federal and private loans, and you can receive help with your loans in as little as one year of work.
For example, through the Kansas State Loan Repayment Program, eligible doctors can receive up to $50,000 for a two-year commitment. You must work in a non-profit facility or public health practice site that meets Kansas’ requirements. Professionals with the following credentials are eligible:
- MD
- DO
- DDS
- DMD
- Doctor of Pharmacy (PharmD)
Until you satisfy the service requirement, you cannot move to another site. If you want to change jobs, you’ll have to get approval to work at another qualifying facility.
Programs vary by state; some limit loan repayment programs to certain medical specialties as well as location, so pursuing these programs can affect your earning potential and career options.
Managing Your Medical School Loans
Although loan forgiveness programs can provide some relief from your outstanding medical school debt, they may come with restrictions. Depending on the program, you may have to commit to working for particular employers or in certain locations for a specific amount of time, which can limit your career options and salary.
Weigh the benefits of pursuing loan forgiveness against the lost earning potential when deciding what type of student loan and how much to borrow. If you’re weighing your repayment options after graduation, consider other options like student loan refinancing to better manage medical school student loans.
