Medical School Debt

The Problem: Medical School Debt Exacerbates Doctor Shortages

The U.S. will face a shortage of up to 86,000 physicians in the next decade.¹Areas of medicine, including cardiology and primary care, face particularly severe shortages as our health care system needs more physicians to treat and manage chronic diseases.

Medical school students take on significant amounts of debt—but few start repaying this debt after graduation. Graduates must complete a residency program as part of their medical training. Residents are considered trainees, and earn just a fraction of a full physician’s salary. Despite this, medical residents immediately take on the full burden of their student debt.

This contradiction penalizes medical residents. Residents shouldn’t have to take on the burden of student debt while training to be doctors. This system drives doctors away from practicing in the areas with the greatest need. 

The Facts: Residency and Medical School Debt

• The median student loan debt is $200,000 for a medical school graduate.²
• The average medical resident earns $60,000 annually.³
• Residency can last 3 to 8 years, depending on specialty. During that time, residents’ debt continues to accrue interest.
• The majority of medical residents say that debt influences their future job choice, including where they live and practice.⁴

The Solution: The REDI Act

The Resident Education Deferred Interest (REDI) Act (H.R. 2028/S.942) is a bipartisan solution introduced by Senators Jacky Rosen (D-NV) and John Boozman, OD (R-AR), and Representatives Brian Babin, DDS (R-TX) and Chrissy Houlahan (D-PA). This legislation would allow medical school graduates to defer their federal student loans during residency, without the penalty of additional interest payments.

¹ New AAMC Report Shows Continuing Projected Physician Shortage. Association of American Medical Colleges.

² 6 things medical students should know about physician compensation. American Medical Association.

³ Ibid.

⁴ CC Lin et al. Perception of Debt During Resident Education—A Systematic Review. Perm J . 2023 Jun 23;27(3):99–109.