Do you have to stay in the same state as your med school for residency?

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For example, you get into a med school as an out-of-state student. When medical school is over, can you go back to your home state and go to a residency program there? Or does that lower your chances?

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You can go anywhere you want/get accepted. You rank the order of the programs that you want to do your residency, so you choose to rank how you want. Obviously, it's not just where you want to go but where you think you will be accepted.
 
Caveat to Smasher's post: geographic links are helpful for the especially competitive areas (e.g., NYC, California, etc.). By no means are they required, but if you know you want to do your residency in NYC, going to med school in NYC - and, thus, having the opportunity to network with local faculty - will probably be helpful for you.
 
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They are hiring you as an employee, so your qualifications and overall 'fitness' as an applicant will be their primary considerations.
 
Caveat to Smasher's post: geographic links are helpful for the especially competitive areas (e.g., NYC, California, etc.). By no means are they required, but if you know you want to do your residency in NYC, going to med school in NYC - and, thus, having the opportunity to network with local faculty - will probably be helpful for you.

Agreed.
 
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