How to Pay Off Medical School Loans - A Guide for New Doctors

 

 

Did you know that Forbes published a detailed article on ‘How to Pay Off Medical School Debt’ in 2023? Out of the 10 suggested ways, some apply to the Indian scenario too. Honestly, the path to pay off medical school loans can be tough. As healthcare professionals, some of us from middle-income groups applied for loans for both undergraduate and postgraduate programs. While some of us repaid with family help, for others it was entirely on the professional to pay back. Together, with industry insights, here are a few tricks to paying off student loans.

 

Tips to Repay Education Loans in Healthcare

Healthcare as a profession is rewarding. However, it is slow in terms of professional growth. Especially in an economy like that of India, it takes years to be financially stable with clinical healthcare practice. In the early years of work, it’s fairly commonplace to find professionals with outrageous student loans. Thus, these insights on how to clear education loan medical related will come in handy:

 

The Plan You Choose

The type of loan, lending institution, repayment plan, and mode matter. You and your family must research while selecting education for healthcare studies. Most lenders offer various plans, such as standard, extended, or income-driven repayment options. To make the best decision, consider your family’s present financial situation, the earning capacity of your chosen healthcare field, future investments if needed to set up practice, and so on. 

 

Income-driven plans adjust payments based on your earnings. This can truly ease the burden if you're starting a low-paying job. Make sure to factor in the interest accumulation, as some plans may stretch your loan duration and increase the total repayment. A strategic plan tailored to your budget can prevent financial strain and help you clear the loan efficiently.

 

EMIs on Focus

There is no looking back once the repayment starts. For a beginner, the first few salaries can be misleading. You’ll find yourself wanting to explore, splurge, and indulge. But those who stay disciplined with EMIs finish the repayment quickly. 

 

• Pay your EMIs on time to avoid incurring late fees and interest. 

• If your income allows, consider making additional principal payments to reduce the overall loan burden. 

• Use budgeting tools to keep track of your monthly expenses and set aside a portion of your earnings for EMI payments. 

• Automatic payments can help you avoid missing a payment deadline. 

• You can speed up the loan repayment process by routinely checking your loan balance and making lifestyle adjustments to allow for on-time EMI payments.

 

Search Jobs the Right Way

Landing the right job in healthcare becomes more critical with a student loan. It is directly proportional to how quickly you repay your education loan. 

 

• Focus on job boards that help you align better with the recruiter.

• Focus on healthcare consultants who handhold you through the application process—researching jobs, writing CVs, applying, follow ups, and recruiter management.

• Pursue opportunities that offer competitive salaries and growth potential. Some healthcare employers include student loan repayment assistance as part of their benefits package, particularly in underserved or rural areas. 

• If you are eligible, look into public service loan forgiveness (PSLF) programs, which can help you pay less. 

• Tailor your job search to your career goals and loan repayment needs such that the financial obligations don’t burn you out. 

 

Side-Hustles and Gigs

The industry is flooded with healthcare side hustles. Explore anything from medical management, online consultations, medical coding, and medical writing to social media marketing in healthcare—if it is ethical, nudges your passion, and earns you extra bucks, then it’s worth a shot.

 

• You could use your medical knowledge and additional skills to work part-time shifts. 

• The extra income streams can be allocated directly to your loan payments. 

• Platforms such as healthcare networks, healthcare consultants, freelancing websites and locum tenens opportunities can help you find short-term, high-paying jobs. 

• Balancing your primary job and side hustles may require time management, but it is a great way to increase your income and pay off your debt faster.

 

Refinancing Loans

Refinancing your education loan can be an effective way to lower interest rates and adjust repayment terms. How does refinancing work? As you are working after completing your degree, you are eligible for a better credit rate, that is essentially the concept of refinancing. 

 

If your credit score has improved or you have a consistent income, refinancing may result in lower interest rates, lowering the overall cost of the loan. 

 

Several lenders also offer flexible terms that better match your financial objectives. Before refinancing, look into multiple lenders and compare fixed vs. variable interest rates, repayment terms, and any potential fees. 

 

 

Anastomos Extending a Hand to Pay Off Medical School Loans

Anastomos, India's first healthcare provider network, was established and is managed by healthcare professionals. Using the newest trends and technology, it streamlines career counseling, upskilling, and mentorship and gives them priority. 

 

Our managers and founders were once enthusiastic healthcare practitioners who went on to become well-known administrators, clinicians, and healthcare entrepreneurs. They are associated with different hiring bodies that recruit healthcare professionals. Moreover, with affordable resources, courses, side hustle opportunities, and more, Anastomos can help young minds with tips to repay education loans. 

 

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