Crushing debt keeps new doctors in the red for a decade

It takes great effort and commitment to become a physician, but rather than being able to give their full attention to the burgeoning medical career, new doctors are faced with a huge debt burden, according to new research.

The report highlights the harsh financial realities awaiting freshly trained physicians, despite public perceptions of high salaries and long-term security. It shows that most new doctors spend the better part of a decade just climbing out of debt before they can begin to build wealth.

The SalaryDr research reveals that the average physician finishes medical school with more than $200,000 in student debt and with salaries during residency ranging between $55,000 and $70,000 a year, it leaves them barely enough to cover living costs, let alone make a serious dent in loan repayment.

As a result, debt grows during training, with balances often ballooning 15-30% by the time doctors reach full salaries, and that very much depends on which choices they make for their medical careers with speciality choice playing a key role in how quickly they can recover their finances.

Surgeons and cardiologists eventually earn higher incomes but their extended training delays repayment further and adds years of interest accumulation. By contrast, family physicians, pediatricians, and internists face the toughest long-term math, starting with the same student debt as their specialty peers but with annual pay 40-50% lower.

Geography adds another layer of complexity with rural and underserved communities sometimes offering loan forgiveness programs but typically paying less, while physicians in expensive cities earn more but face steep living costs.

The study shows that female physicians take on average, 2-3 years longer than male peers to eliminate education debt due to persistent pay gaps and more frequent career interruptions.

“The financial reality of becoming a physician is dramatically different from how most Americans perceive the profession,” says Tyler Polk, founder of SalaryDr. “Most doctors spend their first 7-10 years after medical school just trying to reach financial zero, while their college classmates who entered other professions have been building wealth for nearly a decade.”

Physicians also have requirements for malpractice insurance and continuing medical training, and board certification, although some of these costs may be covered by employers.

Polk also highlighted the limits of government loan forgiveness initiatives.

“Doctors working in qualifying non-profit settings can have remaining federal loans forgiven after 10 years of payments, but the approval rates for these programs have historically been abysmal, leaving many physicians with unexpected balances after a decade of career decisions made around loan forgiveness,” he says.

Although physician pay eventually outpaces most other fields, Polk emphasized that the front-loaded costs and slow path to financial stability create a career trajectory unlike law, engineering, or business. “Medical education represents one of the longest and most expensive professional training paths in America,” he notes.

The analysis further revealed that graduates of private medical schools shoulder around 25% more debt than their public school peers, despite ultimately earning the same salaries.