Working as a healthcare professional can be lucrative, but the required education is often expensive. According to the Association of American Medical Colleges, the average cost of medical school was over $276,000 at public in-state colleges and $374,000 at private in-state colleges in 2024.
Given the high cost, most students have to borrow a lot to pay for medical school; the median amount of medical school graduate debt was nearly $207,000 in 2024. You could spend 20 to 30 years repaying your debt, and with high-interest rates, pay hundreds of thousands in interest charges. Paying off medical school debt can be challenging, but there are ways to alleviate your burden.
Seven Strategies for Paying Off Student Loans from Medical School
Follow these tips to save money on your medical school loans, reduce your monthly payments, or pay them off early.
1. Make payments during your residency
Many medical school students defer their student loan payments during residency so they can focus on this grueling stage of their education without worrying about paying down loans. But deferring your payments means more interest can accrue on your loans, adding to your balance.
Making partial payments during your residency can help keep your costs down. The Association of American Medical Colleges reported that the average first-year resident makes around $64,000, so you’ll have some income coming in that you can use. If you can’t afford to make full principal and interest payments, even making interest-only or flat $25 monthly payments can reduce charges and help you save in the long run.
2. Pursue Public Service Loan Forgiveness (PSLF)
You might qualify for medical school loan forgiveness through PSLF if you have federal student loans and work for a non-profit hospital, medical facility, or government agency. If you work for a qualifying employer full-time for ten years while making 120 monthly payments, your remaining loan balance will be forgiven tax-free. The following loan types are eligible for PSLF:
- Direct Subsidized Loans
- Unsubsidized Loans
- PLUS Loans
- Direct Consolidation Loans
3. Apply for an income-driven repayment plan
If you have federal loans and cannot afford your monthly payment under a 10-year Standard Repayment Plan, you could apply for an income-driven repayment (IDR) plan. (Note that IDR plans are temporarily unavailable, as of March 2025.)
Under an IDR plan, your payment is based on your income and family size. During your residency and early in your career while your income is relatively low — an IDR plan will reduce your monthly payments. Plus, if you still have a balance after 20 to 25 years of making payments, the remaining loan balance is forgiven. However, the discharged amount is taxable as income.
Learn More: The Newest Challenges for Borrowers Seeking IDR Plans in 2025
4. Use your physician signing bonus to make a lump sum payment
To recruit healthcare professionals, some hospitals and healthcare facilities offer signing bonuses. According to the American Medical Association, the average physician signing bonus is $31,473. If you’re eligible for a signing bonus, use it to make a lump-sum payment against your student loan debt. It can make a significant impact on your balance and repayment term.
For example, let’s say you left medical school with $200,000 in student loan debt at 6% interest with a 10-year repayment term. If you received a signing bonus of $32,692 and applied the entire amount toward your student loans, you’d pay off your loans 25 months ahead of schedule. Plus, you’d save $23,274 in interest charges.
5. Research loan repayment assistance programs
If you’re willing to work in an underserved or rural area as a healthcare practitioner, you might qualify for loan repayment assistance through a national or state program. Doing so could help you repay some or all of your student loans.
For example, the National Health Service Corps Loan Repayment Program provides primary care clinicians who serve for at least two years at approved sites with up to $75,000 in loan repayment assistance. For a list of available loan repayment programs, check out the Association of American Medical Colleges’ database.
6. Refinance your student loans
If you’re wondering how to pay off medical school debt faster, student loan refinancing can be an effective technique. When you refinance, you work with a private lender like ELFI to take out a new loan for the amount of your existing debt. If you have private loans or a mix of private and federal loans, you can consolidate them and qualify for a new interest rate and loan term. You may even qualify for a lower interest rate, allowing you to save a substantial amount of money.
How much could you save? Consider this example. If you have $200,000 in loans at 6% interest and a 10-year repayment term, you’d pay $66,449 in interest charges by the end of your repayment term. But let’s say you refinanced your debt and qualified for a 10-year loan at 4.25% interest. Your monthly payment would decrease, but you’d repay just $45,850 in interest charges. By refinancing your loans, you’d save $20,599 in interest.
Learn More: Explore ELFI’s Student Loan Refinance Calculactor
7. Make extra payments
Instead of making minimum payments, pay extra each month to reduce the interest that accrues. Over time, paying extra will help you save money and pay off your debt faster. Increasing your payment by just $100 per month can make a difference, even if you have six-figures of student loan debt.
With $200,000 of student loans at 6% interest and a 10-year term, your minimum monthly payment would be $2,220. If you increase your monthly payments by $100 — paying $2,320 toward your debt each month — you’d pay off your loans six months early and save $4,147 in interest.
Final Considerations When Facing Medical School Student Loan Debt
Medical school is expensive, and if you’re like most students, you’ll need to borrow money to fund your education. Paying off medical school debt can be intimidating, but you’ll likely earn a good income with your degree. You have multiple options for managing your debt, and you could be eligible for student loan refinancing. If you decide refinancing is right for you, check your rate online with ELFI.
