For aspiring physicians, the dream of practicing medicine often comes with the heavy financial reality of how costly physician student loans can be. From tuition to living expenses, the investment in medical school is substantial. Understanding the average medical school debt monthly payment and other repayment obligations is critical for smart financial planning.

How much debt is 4 years of medical school?

How much medical school debt is too much? Those numbers are consistently high, although to what extent depends on a doctor’s specialty, expected salary and lifestyle goals. According to the Association of American Medical Colleges (AAMC), the median medical school debt for 2024 graduates was approximately $205,000. That reflects tuition, fees and living expenses but not undergraduate loans.

For students attending private medical schools or living in high-cost areas, total debt can exceed $300,000. Financial experts often suggest “too much” debt is any amount requiring more than 20% of a doctor’s gross annual income to service. For many physicians, debt levels surpass that threshold during their early career years.

This reality makes it critical to consider repayment strategies before graduation, as compounding interest during residency can add tens of thousands of dollars to the total owed.

What is the average debt after medical school and residency?

Residency can extend the life and cost of student loans. The average medical school debt after residency exceeds the amount at graduation due to accruing interest.

For example:

  • A $200,000 loan at 6.5% interest accrues about $13,000 per year.
  • A three-year residency with income-driven repayments can leave a doctor with $240,000–$250,000 in debt before they even begin full-time practice.

This is why financial advisors often recommend paying at least the interest during residency if possible or considering federal programs that limit interest capitalization. Without proactive measures, the debt burden upon entering the workforce can be overwhelming, especially for physicians in lower-paying specialties.

What is the interest rate for medical school debt?

The average med school debt interest rate depends on whether loans are federal or private.

  • Federal Direct Unsubsidized Loans for graduate students currently have a fixed interest rate of about 7% (as of 2025).
  • Federal Grad PLUS Loans carry even higher rates (around 8%) plus an origination fee.
  • Private loans can range from 4% to 12%, depending on creditworthiness, term length and lender.

Since most medical students rely heavily on federal loans, interest rates are relatively high compared to other forms of debt. Refinancing after residency, especially for physicians with strong income and credit profiles, can reduce rates and total repayment costs. However, refinancing federal loans means forfeiting benefits like income-driven repayment and Public Service Loan Forgiveness (PSLF).

What is the average monthly payment for medical school loans?

The average medical school debt monthly payment varies significantly depending on repayment plan and debt amount.

On a standard 10-year repayment plan: $200,000 in debt at 7% interest = about $2,322 per month

On an income-driven repayment (IDR) plan: Payments may start as low as $300–$500 per month during residency, then increase as income rises

Lower monthly payments on IDR plans make them attractive early in a career but often result in more interest over time. Aggressive repayment after residency can save tens of thousands of dollars.

Are medical school loans forgiven after 10 years?

Some physicians can see loans forgiven after 10 years by meeting strict criteria. Under PSLF, qualifying borrowers must:

  1. Work full time for a government or nonprofit employer.
  2. Make 120 qualifying payments under a qualifying repayment plan.
  3. Maintain qualifying employment for the entire repayment period.

For doctors in academic medicine, the military or nonprofit hospitals, PSLF can be life changing. Those on PSLF still make the average medical school debt monthly payment based on their income-driven plan but they stop payments altogether once the 10-year mark is reached and forgiveness is granted.

How quickly do doctors pay off their student loans?

Some doctors pay off their loans within 5–7 years, while others take 20 years or more. The difference lies in strategy and income.

How to pay off medical school debt faster:

  • Make interest-only payments during residency.
  • Refinance after training for a lower rate.
  • Live below your means in early career years and apply excess income toward principal.
  • Take advantage of employer repayment assistance programs.

High-income specialists in private practice often eliminate debt within a decade, while physicians in lower-paying fields or on extended repayment plans may carry balances well into their 40s.

How long does it take on average to pay off medical school debt?

Nationwide, repayment typically takes between 13 and 20 years. For those asking, what is the average student loan payment per month, the answer depends on repayment choice—anywhere from a few hundred dollars on IDR to several thousand on standard plans.

Shorter repayment terms save money on interest but require higher monthly payments. Longer terms reduce the monthly burden but extend financial obligations and increase total costs.

What is the average age doctors pay off debt?

The average time to pay off medical school debt often pushes physicians’ debt-free age into the early-to-mid 40s.

A doctor graduating at 28, completing a 3-year residency, and entering a 10-year repayment plan would likely be debt free by 41. Those in extended or income-driven repayment plans—or with longer training periods—may not reach this milestone until 45 to 48.

This debt timeline can delay other financial goals such as buying a home, starting a family or aggressively saving for retirement.

Medical school debt is a defining factor in many physicians’ financial lives. From the average medical school debt monthly payment to the impact of interest rates, repayment strategies and forgiveness programs, understanding the full picture is essential for making informed choices.

If you’re navigating physician student loans, explore repayment strategies and loan forgiveness options with the experts at Navigate Student Loans and SavvyFi, both of which are valued partners with PracticeLink. For additional resources on quality of life, immigration assistance and other physician career development insights, visit the resource center at PracticeLink.com.