For new primary care physicians, paying off student loans while starting a successful career can be a challenge. With the average medical school debt for a primary care physician at approximately $234,597, it’s crucial to understand how your salary might affect your ability to repay this debt. Many physicians aim to keep their monthly loan repayment under 10% of their income to maintain a comfortable lifestyle.
Paying Off Student Loans in 5 Years
If you’re looking to pay off your medical school debt in 5 years, the monthly payment required to repay the loan at a 5% interest rate would be around $4,427.13. To ensure that this payment takes up no more than 10% of your income, your starting salary would need to be approximately $531,256.18 per year.
While this may be possible in certain high-paying areas or specialized roles, it’s important to recognize that this is quite a high salary for a new primary care physician, especially in regions with a lower cost of living.
Paying Off Student Loans in 15 Years
Opting for a more extended repayment plan, such as 15 years, makes the monthly payment more manageable. In this case, the monthly repayment would drop to about $1,855.18. To ensure that this payment only takes up 10% of your income, your starting salary would need to be approximately $222,621.37 annually.
This is a much more achievable salary for most primary care physicians, especially in cities where the cost of living is lower or where loan forgiveness programs can help offset some of the debt.
Conclusion
When starting out as a primary care physician, balancing student loan repayment with a comfortable lifestyle is key. If you want to pay off your debt in 5 years, you’ll need a significantly higher starting salary, while a 15-year repayment plan offers more flexibility. Whatever path you choose, planning ahead and considering loan repayment options can make a huge difference in your financial future.