Medical school debt in the U.S. often exceeds $200,000, placing a massive financial burden on physicians. Thankfully, a variety of federal, state, and employer-based programs exist to help doctors reduce, repay, or completely eliminate their student loans. Whether you’re in primary care, academic medicine, or a specialty field, there’s likely a strategy that aligns with your career goals.
Here are 14 of the most effective ways physicians can get their student loans forgiven:
1. Public Service Loan Forgiveness (PSLF)
PSLF offers federal loan forgiveness after 120 qualifying monthly payments under an income-driven repayment plan while working full-time for a government or nonprofit employer. Eligible loans include Direct Loans. Recent reforms have expanded eligibility, benefiting more physicians, including those with past payment issues.
Best for: Physicians in nonprofit hospitals, academic centers, VA facilities.
2. National Health Service Corps (NHSC) Loan Repayment Program
NHSC provides up to $75,000 in loan repayment for a two-year full-time commitment at an approved site in a Health Professional Shortage Area (HPSA). Part-time options are available with adjusted benefits.
Best for: Primary care physicians willing to work in rural or underserved communities.
3. NHSC Students to Service (S2S) Loan Repayment Program
This program offers up to $120,000 to fourth-year medical students who commit to serving at least three years in a high-need community after completing residency.
Best for: Medical students planning a primary care path.
4. Indian Health Service (IHS) Loan Repayment Program
Physicians can receive up to $40,000 for a two-year service commitment in IHS facilities serving American Indian or Alaska Native populations. Contracts can be extended until all qualifying loans are repaid.
Best for: Those interested in working in tribal or rural health.
5. State-Based Loan Repayment Programs
Most U.S. states offer their own programs to recruit physicians to underserved areas. For example, California’s CalHealthCares program offers up to $300,000 for physicians who commit to five years of serving Medi-Cal patients.
Best for: Physicians staying in one state long-term.
6. Military and Veterans Affairs Programs
The U.S. Department of Veterans Affairs offers up to $160,000 over four years for physicians in high-need specialties. Military branches may also offer student loan repayment or full tuition coverage in exchange for service.
Best for: Physicians open to military or VA service.
7. Income-Driven Repayment (IDR) Forgiveness
Plans like SAVE, PAYE, and IBR cap payments based on income. After 20–25 years of qualifying payments, any remaining balance is forgiven. This isn’t fast—but it’s an option for high-debt, lower-income physicians.
Best for: Physicians with long repayment timelines or inconsistent income.
8. NIH Loan Repayment Programs (LRPs)
The National Institutes of Health offers up to $50,000 per year for physicians conducting clinical or biomedical research. Multiple programs exist for pediatric, health disparities, and addiction research.
Best for: Physician-scientists in academic or research institutions.
9. Employer-Sponsored Loan Repayment
Many hospitals and healthcare systems offer loan repayment incentives as part of recruitment, especially in rural or underserved areas. These can range from $10,000 to $100,000+.
Best for: Negotiation-savvy physicians entering high-demand markets.
10. Federal Perkins Loan Cancellation
While Perkins Loans are no longer issued, borrowers with existing loans may qualify for cancellation by serving in public health or underserved roles. Limited to older loans issued before the program sunset.
Best for: Older borrowers with legacy Perkins Loans.
11. Hospital-Based Forgiveness Programs
Some nonprofit and faith-based hospitals offer internal loan repayment or forgiveness programs, separate from PSLF, as part of employment packages.
Best for: Physicians working for large nonprofit systems.
12. Academic Medicine Loan Repayment
Medical schools and universities may offer loan repayment assistance to faculty physicians, particularly those involved in teaching, research, or serving in primary care roles.
Best for: Academic-minded physicians.
13. State Tax-Incentivized Programs
Certain states provide tax credits or deductions for physicians practicing in rural or high-need areas. These indirectly reduce loan burden by lowering taxable income.
Best for: Primary care physicians in high-need states.
14. Refinancing with Forgiveness Clauses
Some private lenders offer refinancing options that include hardship or death/disability forgiveness clauses. These are not “traditional” forgiveness but provide risk protection.
Best for: Physicians with stable income who don’t qualify for PSLF or NHSC.
Final Thoughts
Physician loan forgiveness isn’t one-size-fits-all. Your specialty, career goals, and location all influence which programs are best for you. Many physicians successfully combine multiple programs over time—such as NHSC followed by PSLF, or NIH followed by academic medicine forgiveness.
To maximize your options:
- Consult a financial advisor
- Keep detailed records
- Always read the fine print
With the right strategy, physicians can not only manage their debt—but eliminate it altogether while making a meaningful impact in the communities they serve.