Must Have Details on Average Medical School Debt 2020

average medical school debts

As per the recent analysis data from the Association of American Medical Colleges, there are 75% of medical students who were graduated in 2018 with medical school debt. Among the graduates, there was a round figure of an average student loan debt of almost $196,520. That was increased from $190,694 in 2017. These figures have included debt from undergraduate studies, medical school, and other higher studies. 

This highlights a point that one has to suppose a 6.25% interest rate with the $197,000 loan balance. And has own up to $2,212 per month with a 10-year repayment plan. This might give a shock to you, but do not take stress as this blog will help you to understand all the points regarding the average medical school debt.

What is an average medical school debt?

In a study, it is found that medical school graduates have more student loan balance as compared to the people who have a bachelor’s degree as the highest level of education. But only doctors are not health experts who are outsized the student debts. 

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Here, we have given some of the analytical value of how these average medical school debts are compared with the other field of study in 2008:

  • Average dental school debt: $285,180.
  • The Average veterinary school debt: $182,015.
  • Average medical school debt: $195,500.
  • The Average pharmacy school debt: $165,500.
  • Average bachelor’s degree debt: $28,200.

What is the median medical school debt?

The median medical loans are a better option for the debt burden for the doctorate degree as it is own by half of the graduates in less or more values. This has a figure value of $200,000 in 2008. This includes most of the college debt of doctors from medical school. Besides, the median medical school debts do not only include the loans from the premedical educations from 2018 graduates who have medical school loans, which were $194,000.

As per the AAMC report, nowadays, the newly graduated doctors who have completed their studies from private medical schools have higher student debt. As compared to the graduates who have joined public medical schools. Besides, this has the figure of approx $210,000 for the private medical student loan as compared to $190,000 for the graduates who have studied from the public medical schools.

Factors for repaying average medical school debt

Ther are three parameters on which the cost of the repaying average medical school debt-based and these are:

  • What one does with their loans in residency.
  • The rate of interest for the loans.
  • Duration for how long it would take one to pay off the loans.

What is the interest rate for medical school loans?

There are three factors for the interest rate for the students’ loans, and that is for graduates, for undergraduates, and for PLUS loans. Several doctors have three different kinds of loans by the time of medical school to graduate. 

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The rate of interest for a federal student loan is fixed for a lifetime when you take it out. But for the new borrowers, the offered rates are managed annually to account for the borrowing cost of the government. As per the data of recent years for an average medical school debt loan, the rate of interest looks like:

Type of loan and borrowed amountAverage interest rate
Undergraduate loans for $19,3004.79%
PLUS loans with $70,3007.41%
For graduate students, the direct unsubsidized loans value $162,0006.36%
Total: $251,000Average interest rate: 6.6%

Loan balances and rate of interest for average medical school debt graduates

The students of medical schools can take up to a total of $224,000 in unsubsidized and subsidized direct loans before going to the PLUS loans. But there is an annual borrowing limit for the several medical school students on more reasonable loans for $40,000.

As the annual medical school borrowing increases to $60,000/per, most of the students are turning to federal private or PLUS student loans to decrease the gap of their educational fundings.

What is the average income with the medical school degree

Although there are several doctors who are leaving their medical school with the average six-figure educational debts, and when they are successful in finishing their residencies. Then one can easily expect the earing with the debts.

As per the recent data from the Bureau of Labor Statistics, in 2018, the average earning of the medical school degree holder were:

  • Pediatrician: $183,240.
  • All medical school graduates: $210,980.
  • Surgeons: $255,110.

Steps to pay off the average medical school debt

There are various doctors who face several challenges while repaying the average medical school debt as they have borrowed higher debts as compared to the undergraduates and graduates professional students. Although, several of them will earn sufficient to repay the loans comfortably. As they need to go through the three to seven years of less paying residency work by finishing the medical school studies.

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We have mentioned some of the steps by which you can pay off your average medical school debt:

Check whether you are eligible for loan forgiveness

If one has the plan to pursue their career with a qualified nonprofit or government, then one can apply and qualify after 10 years of successful payments for Public Service Loan Forgiveness. If one does not have such kind of plan, then one can apply for loan forgiveness after 20-25 years of payments on the basis of their income-driven repayment plans.

Plan what to do during the residency with the loans

Several medical school graduates are not able to earn enough to make the payments of their loans. Then there are three renowned methods to manage the loans during the residency, and that is: forbearance, graduated repayment, or income-driven repayments.

Select the appropriate repayment plan after residency

Once you complete the residency, then one may try to consider the new repayment methods and techniques that help in a long term manner. There is a point when the salary boost and one can expect it is finalizing the residency, which means one can save money with the help of paying the loans faster.

Check whether refinancing making sense or not

As you know, that rate of interest depends on the one size fits all method, the borrower of good credit and potential earners can easily qualify for the fewer rates loans from the private lenders.


This blog has provided all the necessary information about the average medical school debt that includes the meaning of it. As well as what is median medical school debt, factors for repaying the loans, figures of the interest rate of the loans, and steps that helps you to pay off the loans. All these points help you to pay the medical school debts and keep in mind that the rate of interest can drag you to more complicated situations. Therefore, try to pay them off as soon as possible. if you have a question about who can do my finance assignment then you are in right place. our assignment in finance experts provides the best service at a reasonable cost.