As a graduate medical education specialist/coordinator, I have encountered hundreds of medical school students and residents early on in their career. The young physicians vary in their financial status as one might think, for example some have over $300k in student loan debt, and while others don’t have student loan debt, there may be credit card debt, and a lucky few who have no debt because their parents paid for their education or they went to more affordable international schools. As part of my job I recruit medical students to join my residency program. Once they match into our program for three years I help council resident physicians on their career paths, give them contract advice, and process their HR documents while employed at my institution. Getting to know these young brilliant people is a blessing, but it frustrates me to no end that they have very little education on personal finance and their own loan policies and processes.
When researching residency program or jobs (for those not in medical school), interview at places that are located in areas with affordable housing and public transportation. There are a lot of costs that occur after you’re out of school and unexpected car trouble or housing repairs are not something you can afford. I used a website to market my program, and I include contract information, benefits, schedule options, and Visa sponsorship information all online. I have a lot of internal national graduates in my program and using a website that used a translation company with experience and a reputation would be beneficial to me as the recruiter and to you the graduating student. Being accessible to young physicians all over the globe is very important in the medical field, we learn from each other’s best practices and findings. When you are looking for a job you should also consider any further benefits information that may come with your potential contract, such as moving allowance, meal allowance while on site, and education reimbursement fund for books, electronics, and travel to educational conferences. Finding a program or job with benefits like this will save you money!
Once you are employed read your loan policy and procedures for deferment and forbearance. Check with your human resources department about signing off on your deferment document or giving you some help with refinancing your student loans. In my experience most loan deferments last for the time you are in residency/ continuing your education while you are employed or an intern. If you are not eligible for loan deferent or forbearance, apply for income- based repayment. Make sure to do your own research on the options available to you, because no one will do it for you, as you should be educated on you own finances.
My most important tip for paying off your loan is to live your lifestyle as you did as a new graduate for at least two years after completing your program without spending your extra income. Doing this, will allow you to pay off your loans very quickly. Continue to live like you are making minimal wages when you’re actually making over $200k per year.
photo credit: Interest Rape via photopin (license)