Medical school debt

More Medical Schools Reduce Debt-Burden on Students

According to a Medscape report, 11 medical schools in the last five years have eliminated or reduced tuition. The University of Houston waived tuition for its first class of students. And other programs, like the Yale School of Medicine, are demonstrating a longer-term commitment. The school recently announced that a large donor gift will ensure that all medical students with demonstrated financial need will take on no more than $10,000 in loans. 

On average, medical school tuition has increased by $1500 a year since 2015, which has significantly outpaced inflation. And the majority of students, almost three-quarters, take out loans to pay for its cost. Students bear an average debt burden of $200,000 to $215,000, although about 14 percent have loans worth more than $300,000. This is particularly noteworthy because tuition actually makes up a small percentage of schools’ operating budgets. While it varies between programs, at NYU Grossman, prior to it becoming tuition-free, tuition comprised just 0.25 percent of the budget. Via Medscape, Daniel Barron, MD, and a psychiatrist at Brigham and Women's Hospital in Boston, argued that most schools could cut tuition by belt-tightening and redirecting some existing funds. 

"Tuition can't keep rising without having unintended consequences. The resulting debt is putting a massive amount of pressure on future generations of physicians," said Robert Pearl, MD, and a professor at Stanford’s School of Medicine told Medscape.  

Below, we’ve compiled a list of schools that have created programs to reduce or waive tuition. The Education Data Initiative also provides a complete list of average costs for resident and non-resident attendees at the 193 accredited medical schools (allopathic and osteopathic). 

Schools With Eliminated or Reduced Tuition:

New York University Grossman School of Medicine: Provides full tuition for all admitted students, as well as student health insurance

Cleveland Clinic Lerner College of Medicine (CCLCM): Provides full tuition and select administrative fees for all admitted students

Columbia University Vagelos College of Physicians and Surgeons: Offers the Vagelos Scholarship Program, which will meet 100 percent of a student’s demonstrated financial need

Weill Cornell School of Medicine: Offers need-based financial aid under a financial program that offers full-ride grants (debt-free) instead of loans

Icahn School of Medicine at Mt. Sinai :The Enhanced Scholarship Initiative (ESI) allows qualifying (financial need-based) medical students to graduate with a maximum total debt of $75,000.

Washington University School of Medicine in St. Louis: Considers all admitted first-year students for a full or partial tuition scholarship for all four years of medical school based on need and/or merit (or a combination) 

Stanford School of Medicine: Provides scholarship funding to eliminate medical school debt for qualified students with demonstrated financial need

Geisinger Commonwealth Medical School: The Geisinger Primary Care Scholars Program provides debt-free medical school and living assistance to medical students who commit to work within primary care at the health system after graduating.

NYU Grossman Long Island School of Medicine: Provides full tuition, student health insurance, and offers debt-free scholarships to qualifying students for housing, food, books, and other miscellaneous expenses

Kaiser Permanente School of Medicine: Offers students, entering between 2019-2024, the school’s first five cohorts, a scholarship covering 100 percent of tuition for all four years of medical school

Yale School of Medicine: Beginning with the 2023–2024 academic year, Yale medical students with demonstrated financial need will not need to take out more than $10,000 in loans per year.

Worried About Medical School Debt? Financial Advisors Weigh In.

Medscape’s 2022 Medical Student Lifestyle Report found that med students’ top concerns deal with managing finances, debt, and contracts. As a follow-up to these findings, Medscape ran a poll of medical students to learn more about their financial issues. Over two-thirds (68 percent) of the 151 respondents said that they always/often worry about finances. Among first- and second-year med students, this percentage jumps to 75. Over half said that they are confused about money and only 42 percent—just 26 percent of female respondents—said that they feel prepared to manage their finances.

Most students named debt as their primary concern (86 percent). This was followed by investments (52 percent), contracts (27 percent) and business operations (16 percent). Some addressed their difficulty in balancing spending for necessities and “fun” items, and cited issues with budgeting for the residency application process in the fourth year. 

Financial planner and advisor to young doctors, Paul Morton, spoke with Medscape, noting that medical students are often asked to make binding decisions, many of which they don’t feel confident making, about loans and investments. He also acknowledged that student loan rules have become more complex.

James Nutter, Director of Client Experience for IM Wealth, also spoke with Medscape and reassured medical students that loans for medical school are a remarkably safe investment for their future.

In addition, he encourages medical students to consider the following:

  • Examine your relationship with money. Are you being overly influenced by your childhood experiences, your parents struggle with money, or other external factors such as social media? What personal experiences may be driving or coloring your spending behaviors?

  • Take note of exactly how you spend your money on a monthly basis. What types of items are buying? Detailed knowledge of your spending habits can inform how much you need to borrow.

  • Identify three core values, and spend your money in ways that align with those values. This will help to reduce the noise of external pressures on your spending and ensure that your spending is reflective of who you are.  

Biden to Announce Student Loan Debt Relief for Earners Making Less than $125K

According to the New York Times, President Biden is expected to announce today that his administration will cancel $10,000 in student loan debt for Americans earning $125,000 or less per year (or households earning $250,000 or less per year). The administration will also extend the payment moratorium until December 31st of this year, with borrowers expected to resume payments in the new year. 

Along with this announcement, the President is expected to report that college Pell grant recipients will receive an additional $10,000 in debt forgiveness. 

Legal challenges to the loan forgiveness program are expected, which may make the timing for implementation uncertain.