Loan Forgiveness for Doctors and Dentists

If anyone needs a good loan forgiveness program, it would be the doctors and the dentists.  The average debt that doctors are saddled with after graduating medical school is now over $250,000.  And dentists, well they've raised the bar with an average debt over a whopping $290,000.

Not to mention that once they graduate many find themselves in residencies that do not pay enough to even begin to pay back those loans.  Loans, that may double by the time they are full fledged doctors and dentists.

Luckily, there are some forgiveness programs that may give our dentists and doctors hope.  

Let's take a closer look at these programs and see which one is works for you.

Income-Driven Repayment Plans

These are repayment plans that are based on your discretionary income and your family size.  It is the only forgiveness program that is not dependent on your occupation so anyone can apply for it.

You choose from 4 different repayment plans that each have their own rules for eligibility and monthly payment amounts.  With all plans however, if your income increases or your family size increases, your payments would change accordingly. 

 After 20 or 25 years of on-time monthly payments, you would be eligible to have your remaining loan balance paid off.  Be aware though that any amount paid off is taxed as income.

This may not be the best option for Doctors and Dentists as there are so many other loan repayment and forgiveness options out there with more benefits.  But know that you do always have this to fall back on if nothing else works.

Public Service Loan Forgiveness Program (PSLF)

As a doctor, dentist, physician assistant, etc. you may qualify for the PSLF program.  The program mainly depends on where you work and not what title you hold.  This is definitely a better option than the income driven program.  So if you qualify you may want to take it.

With this program your debt would be forgiven after 10 years (not 20 or 25) and it would be tax-free forgiveness.  I talk about the PSLF program more in-depth here.

National Health Service Corps Loan Repayment Program

The National Health Service Corps (NHSC) offers 4 different loan repayment programs: NHSC Loan Repayment Program, NHSC SUD Workforce Loan Repayment Program, NHSC Rural Community Loan Repayment Program, and the NHSC Students to Service Loan Repayment Program.

These programs are open to a range of health care practitioners including Physicians (MD/DO), Physician Assistants (PA), Health Service Psychologists (HSP), Licensed Clinical Social Workers (LCSW), Marriage and Family Therapists (MFT), Licensed Professional Counselors (LPC), and certain nurse practitioners.

In addition, each program expands to include other professions that they deem eligible. You may only apply to one program.

NHSC Loan Repayment Program

Including the professions mentioned above, this program is also open to Dentists (DDS/DMD) and Dental Hygienists (RDH).  It only requires a 2-year service commitment but you must work at an approved site in a Health Professional Shortage Area (HPSA).  For working full time you can receive up to $50,000 and for working part-time, up to $25,000.

Pay attention to the application deadline as it takes 3 weeks to complete the application.  You must be US citizen and able to be a provider in Medicare, Medicaid, and the State Children’s Health Insurance Program.

Check out the NHSC Loan Repayment Fact Sheet (pdf).

NHSC SUD Workforce Loan Repayment Program

SUD stands for Substance Use Disorder and this program was formed in response to the opioid crisis.  The requirements are the same as the previous program as well as the application time (3 weeks).  So be sure to apply early!

The commitment for this program is 3 years and as a full-time worker you would receive up to $75,000 towards loan repayment (up to $37,500 for part-timers).  You must work at an approved SUD site.  SUD Counselors, Pharmacists, and Registered Nurses are also eligible to apply.

NHSC Rural Community Loan Repayment Program

This program was established to help the opioid crisis in the rural communities across the country.  You should be a US citizen and a provider in Medicare, Medicare, and the State Children’s Health Insurance Program.  Also, you must be working, or have accepted a position at an approved rural SUD site that provides outpatient care in HPSAs.

This one is also a 3-year service commitment where as a full-time worker, you can receive up to $100,000 in repayment and $50,000 working part-time.

NHSC Students to Service Loan Repayment Program

This program is open to medical or dental students in their last year of medical school to help pay for student loan debt.  You must be a US citizen or national and be pursuing a M.D., D.O., D.D.S., or a D.M.D. degree.

In exchange for a 3-year commitment to work in a designated HPSA, you will receive up to 4 annual installments of $30k.  That’s a total of $120k to repay your debt.  And the best part is that this funding is tax exempt! So you won’t have to pay taxes on it.  What’s more, you can reapply to continue your service until your loans are paid off.

Be sure to check their Student to Service fact sheet (pdf) to make sure your specialty is eligible.  

To Apply

To apply go online to their website and fill out their application.  Be sure to note the required documentation that you will need to provide.  Also, for the NHSC LRP and Students to Service, people from a disadvantaged background may receive priority under certain conditions.  

Indian Health Services Loan Repayment Program

The Indian Health Services Loan Repayment Program is actually funded by the National Health Service Corps (NHSC).  They give ten of millions of dollars of funding to support health professionals working at Indian Health Service facilities, Urban Indian Health Programs, and Tribally-Operated 638 Health Programs.

This program will pay up to $40,000 of your eligible loans for two years of service.  You may continually renew your contract until your loans are paid off.  Holla! ( a bit old school I know lol)

Faculty Loan Repayment Program

This program is funded by the Health Resources and Services Administration (HRSA) like the NHSC.  If you are interested in pursing a career in teaching, this program could be for you.  It was established to help recruit faculty members from people in the health field. 

If you decide to work at an accredited health professions institution full-time or part-time, a portion of your loans will be repaid each year.  The government will pay up to $20,000 per year and many health professions institutions will match this.  This program also provides funding to help pay for the increased tax burden.

To Apply

You can go to the Faculty Loan Program website to fill out the application before the deadline (typically end of June).  To be eligible to apply, you must come from a disadvantaged background (economically or environmentally), have a qualified health professions degree/certificate, and have a minimum of 2-year commitment at an approved institution.

National Institute of Health Loan Repayment Program (LRP)

The NIH has many repayment programs for those who are willing to do research in biomedical and biobehavioral fields at a non-profit or governmental organization. 

It is open to US citizens and permanent residents who have one of the following degrees or their equivalent: D.D.S., D.M.D., Ph.D., M.D., D.O., D.V.M., Pharm. D., A.N.D./B.S.N.

To qualify, your student loan debt must be more than 20% of your initial pay and you must work for them for at least 2 years.  NIH repays up to $50,000 per year and also pays the IRS for you for your resulting tax bill with an amount equal to 39% of the repayment amount.

NIH Intramural LRP

There are 3 Intramural programs offered by the NIH.  These are for people employed by NIH.  For these programs please consult with your supervisor about your eligibility.

• NIH AIDS Research Loan Repayment Program: 2 year commitment
• NIH Clinical Research for Individuals from Disadvantaged Backgrounds LRP: 2 year program
• NIH General Research LRP: Minimum 3 year requirement, Open to individuals in subspecialty and residency training programs

NIH Extramural LRP

There are 5 Extramural programs offered by the NIH.  These are for people not employed by the NIH.

• Clinical Research LRP
• Pediatric Research LRP
• LRP for Minority Health Disparities Research
• Contraception and Infertility Research LRP
• Clinical Research for Individuals from Disadvantaged Backgrounds LRP

All extramural programs are a 2 year commitment and you must work at least 20 hrs per week on the NIH research.  Check out their website for more specific guidelines for each program.

To Apply

Go online to NIH LRP website and click on Apply.  Make sure you know which LRP you want to apply for as well as its deadlines and timelines. They have a nice system that can help walk you through the process. In addition to that, they have a calculator so you can see how much your award would be.

In addition, certain people are considered ineligible for this program, such as people with Federal Judgment liens.  There are also specific loan conditions, i.e. no parent PLUS loans.  So be sure to check that out as well.

There is no limit on how many times your reward can be renewed and NIH will continue awarding you money equal to ½ half the amount of your eligible debt.  Max is $50,000.  If your debt is less than $10,000, they will pay it in full.

Of course, should you need to break contract for any reason, you will have to pay $7,500 for every month you didn't complete or $31,000, whichever is higher.

Specialty Awards and Grants for Educators: Be on the look out for these as there are a number of them for specific medical and dental fields.

Navy Financial Assistance Program

This program is open to Doctors (MDs and DOs) and Dentists currently accepted to or enrolled in a residency or fellowship program.  The program must be accredited and in a specialty that is ‘critical’ to the Department of Defense.

This program requires an 8 years service commitment in active and reserve duty.  It is open to men and women who are US citizens.  And to qualify, you must meet physical fitness weight and requirement. 

Your training time and residency do not count towards the 8-year commitment.  You will receive an annual grant of $45,000 and monthly stipends of over $2,000 while you are in residency or training.  In addition, you will receive payments for normal educational expenses.

Army Doctor Programs

Financial Assistance Program

Similar to the Navy program, through their financial assistance program you can receive a grant of more than $45,000 every year and a stipend of more than $2,000 per month.

Active Duty Health Professions Loan Repayment Program

Under this program you can receive $40,000 per year for three years.  That’s a total of $120,000 that you can use to pay back those med school loans! You can also combine it with the Health Professions Bonus.  For dentists, that's an extra $75k and for Pharmacists, an extra $30k.

Health Professions Special Pay

This special pay allows you to receive $25,000 every year for 3 years. You must have completed residency but it is open to US permanent residents as well as US citizens.

Healthcare Professionals Loan Repayment Program

This program is open to certain specialty physicians who are serving in Army Reserve Troop Program Units, Army Medical Department (AMEDD) Professional Management Command, or the Individual Mobilization Program.  You can receive up to $40,000 per year towards your student loan debt.  The maximum amount you can receive is $250,000

Air Force Financial Assistance Program

The Financial Assistant program is quite similar to the Army program. During your residency, you will receive an annual grant of more than $45k as well as a stipend of more than $2,000 every month.  In exchange, for every year you participated in the program you must serve in the Air Force plus one additional year.

Perkins Loan Cancellation

As a Doctor or Dentist you may be eligible for Perkins loan cancellation if you are a faculty member of a tribal university or engaged in a volunteer service.  With Perkins loan cancellation, you could have your Perkins Loans completely forgiven, interest included.  

To be eligible for this benefit your employment must have begun on or after August 14, 2008 and you must have 5 years of service.  Every year that you work in an eligible employment or volunteer service, you can have a portion of your loans cancelled.  

For your 1^st and 2^nd years, they will cancel 15%.  For your 3^rd and 4^th years, 20% will be canceled and for your  5^th and final year, the remaining 30% will be canceled.

You will have to apply for the benefit through your school.

State Sponsored Programs

There are over 30 states that offer debt repayment programs or assistance.  Some offer multiple programs so be sure to look them up and check out the requirements for each.  Here is a list of states with programs to assist you in paying back your school loans. 

• California, Colorado, Alaska, Arkansas, District of Columbia, Delaware, New Mexico, Maryland, Georgia, Iowa, Kansas, Kentucky, Louisiana, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, North Dakota, Ohio, Oklahoma, Oregon, Texas, Rhode Island, Utah, Virginia, Vermont, Wisconsin, Wyoming

* This list may not be exhaustive.  Be sure to check your state's website.

There are also a few states with student loan debt forgiveness programs.

Things to note:

• Most debt forgiven is taxed as income (except PSLF)
• Loans in default are not eligible for forgiveness programs (but are eligible for discharge programs).  Defaulted loans must be brought back to good standing first (rehabilitated or consolidated). Else-wise you could try student loan settlement or bankruptcy.
• Check every year to make sure you still qualify (for Income Driven/PSLF especially), you don't want to get to the end and find out you do not.
• For the Income Driven and PSLF programs, you need to re-certify every year.

All in All

Having a ton of debt can be overwhelming.  Hopefully, one of these programs mentioned here will help you finally get rid of your student loan debt forever.  Stay Strong!