Devil is always in the details. Look the specifics and details over thoroughly several times.
It may or may not be worth it depending upon your particulars.
Three years of residency = anywhere from $35,000-$50,000 per year, with some small graduation in salary as you progress through second and third years.
Will you be in a fellowship kind of roll after you come back there? If you are more in learning mode than earning mode, depending upon what you are specializing in, it may well be worth it.
At ~ $60,000 per year (four years med school) + $30,000/year stipend (3 Years), that comes out to about $110,000 per year. How does the repayment work in terms of taxation? If it is totally tax free, even better.
But if you won't be happy in the terms and area, and all the rest--all angles and details, it may NOT be worth it FOR YOU.
I'd have an attorney look it over too. Seriously.
Also, just b/c people have loans out for X amount of years, it does not mean you can't pay them off sonner. That's how amotization calculators can be helpful.
So again, the devil is in the details, and it all depends.
If this is legit, take it to a lawyer and talk to some reliable people rather than throwing it up on a message board. 🙂
Just my two cents on it; but that's what I would do. Every contract has fine print and specialized wording of which you must be aware.