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By JOSH MITCHELL
Jul 20, 2016 10:45 am ET
108 COMMENTS
Many highly paid doctors are poised to get a very large windfall from the federal government.
A program designed to ease the student-debt burden of teachers, public defenders and other modestly paid workers in the public sector is also set to help thousands of physicians, many of whom work for nonprofit hospitals. On average, recent medical-school graduates who enroll in the program will have roughly $131,000 in their student debt forgiven.
That’s the finding of a study published in June by the Journal of General Internal Medicine. The peer-reviewed paper shows how new physicians are increasingly enrolling in a program known as Public Service Loan Forgiveness. The Wall Street Journal reported on the so-called “doctor’s loophole” last year.
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The program applies to just about anyone who works for a nonprofit, regardless of salary. An increasing share of physicians—including highly paid specialists like surgeons–are eligible as nonprofits buy up hospitals and private practices. Three-quarters of hospitals are either nonprofit or owned by the government, according to the American Hospital Association.
Physicians are particularly well positioned for big payouts. The typical borrower owed a median $162,000 upon leaving medical school in 2012, according to the New America Foundation.
And they don’t earn big salaries right away. Doctors typically earn between $50,000 and $60,000 in the first three to eight years out of school as they complete training, known as “residency.” Thus, the amount they pay under income-based repayment will be low, at least through training.
http://blogs.wsj.com/economics/2016...000-in-student-debt-for-thousands-of-doctors/
Jul 20, 2016 10:45 am ET
108 COMMENTS
Many highly paid doctors are poised to get a very large windfall from the federal government.
A program designed to ease the student-debt burden of teachers, public defenders and other modestly paid workers in the public sector is also set to help thousands of physicians, many of whom work for nonprofit hospitals. On average, recent medical-school graduates who enroll in the program will have roughly $131,000 in their student debt forgiven.
That’s the finding of a study published in June by the Journal of General Internal Medicine. The peer-reviewed paper shows how new physicians are increasingly enrolling in a program known as Public Service Loan Forgiveness. The Wall Street Journal reported on the so-called “doctor’s loophole” last year.
=
The program applies to just about anyone who works for a nonprofit, regardless of salary. An increasing share of physicians—including highly paid specialists like surgeons–are eligible as nonprofits buy up hospitals and private practices. Three-quarters of hospitals are either nonprofit or owned by the government, according to the American Hospital Association.
Physicians are particularly well positioned for big payouts. The typical borrower owed a median $162,000 upon leaving medical school in 2012, according to the New America Foundation.
And they don’t earn big salaries right away. Doctors typically earn between $50,000 and $60,000 in the first three to eight years out of school as they complete training, known as “residency.” Thus, the amount they pay under income-based repayment will be low, at least through training.
http://blogs.wsj.com/economics/2016...000-in-student-debt-for-thousands-of-doctors/
