State-funded loan repayment programs

[Doctor2Doctor]

I've been searching for information about states that offer physician loan repayment programs. I have a few unanswered questions:

1) Are these programs typically hard to get? Limited spots/funds or ultra competitive?

2) How much of an actual financial advantage are these situations? Are these physicians in situations that are underpaid? (I'm looking for feedback from those who have experience with these programs.)

3) Purely hypothetical here. Let's say I liked to move around and I had an unusually high amount of medical school debt. Could I hop between states every 2-4 years using these programs until my loans were paid off?

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[BorntobeDO?]

1. Depends on the state, each program is different. The worst programs (IMO) are the ones that require a job to match what the state is giving, and require the job to apply. The best only require you to practice in certain areas with no other restrictions. Another common restriction is having to have done residency or med school in the state with the forgiveness. Each one is different tho, so you have to know your target ahead of time. The other issue is whether the state treats the loan repayments as taxable (most) or nontaxable (some). That can make a big difference.

2. Depends on your specialty. In primary care (usually IM, FM, Peds, and OB from what I see) they are definitely a consideration. Some programs claim they go upto a million dollars, but I find when I look closer that 250k is the practical limit d/t yearly limitations on disbursements and limits in years you can receive. With maybe the one exception being Alaska, which I believe just pays off your loans but will negotiate the amount of years based on the amount of debt (no specific formula that I know of).

3. In the states that do not require you to do residency or medical school in them this is possible I think. But I had never considered doing it. Interesting thought.