Medical School Scholarships with Work Commitment- Worth It?

[spillingthetea]

I’ve been looking into medical school scholarships and had a question: Do hospitals offer student loan repayment assistance if you sign a contract to work with them for a certain number of years after completing residency or fellowship?

I recently came across a scholarship that covers a portion of tuition, but it requires signing a contract to work for the hospital system after training. When I reached out for details about the commitment and percentage covered, their response was vague. They just said it depends on a "multitude of factors" and that I’d only find out once I receive an offer. One example they provided was a 1.5-year service commitment for each year of scholarship received.

I’m hesitant to apply because I don’t even know what specialty I want to pursue, let alone where I’d want to practice. Has anyone gone through something similar or have any insights on whether these types of scholarships are worth it?

I’d appreciate any thoughts or advice!

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[Hollow Knight]

So you need to go read a book called The White Coat Investor's Guide for Students. You can read it in like three hours and it's everything you need to know right now about personal finance and your schooling (assuming you're mostly a traditional student)

But your options are basically- join the military, but unless you go into FM or peds, you'll lose money doing that because military physicians get paid so much less than most doctors. The military will pay all your loans off though.

You can also do the NHSC (National Health Service Corps)- you apply, and have to pick a specialty, and if you get it, they'll pay your loans off, but you have to spend an equal number of years working in a random BFE location they choose.

What you're discussing kinda sounds like PSLF (public service loan forgiveness)- you work for 10 years at a non-profit institution (most hospitals), make 10 years worth of monthly payments, and then the federal govt forgives your loans. But Trump will probably axe that program.

There are lots of other state-run scholarships, and the rules vary. There are also hospital systems that will give you "loan repayment" as part of your contract to sign with them, but I wouldn't even worry about those until after residency is about to be over.

I told you about that book at the beginning because, for most med students, borrowing the money and then paying it off is the best option. But that book has some math that will convince you of that. I know it's scary, but you will make enough to pay your loans off I promise. Just can't go buy a doctor house and doctor car straight out of residency.

 

[LizzyM]

Wasn't the premise of the TV show "Northern Exposure" that a new doctor from New York City is required to take a job in a small town in Alaska? That's what I imagine is being offered here. You'll be a primary care provider in a place few would chooses to live in.

 

[Med Ed]

Such things do exist, but unless you're hellbent on working in a specific field in a specific area, you're generally better off waiting until you're near the end of training and actively looking for employment. Many jobs will offer loan repayment schemes, although they often come with some attached strings.

I have seen various jobs with 25K/year repayment, up to a max of 200 or 250K. At the 10 year mark you could use PSLF to finish off the remaining balance. Of course, this assumes PSLF with still exist in coming years.

 

[AJS59]

Such things do exist, but unless you're hellbent on working in a specific field in a specific area, you're generally better off waiting until you're near the end of training and actively looking for employment. Many jobs will offer loan repayment schemes, although they often come with some attached strings.

I have seen various jobs with 25K/year repayment, up to a max of 200 or 250K. At the 10 year mark you could use PSLF to finish off the remaining balance. Of course, this assumes PSLF with still exist in coming years.

Question: Are those all academic jobs, or is that also potentially a feature within Private Practice?

 

[Med Ed]

Question: Are those all academic jobs, or is that also potentially a feature within Private Practice?

Private and government, mostly. A lot of them are primary care gigs in smaller or more rural communities.

 

[Rachapkis]

Wasn't the premise of the TV show "Northern Exposure" that a new doctor from New York City is required to take a job in a small town in Alaska? That's what I imagine is being offered here. You'll be a primary care provider in a place few would chooses to live in.

But Spillingthetea will get to date and fall in love with Maggie O’Connell and live amongst a bunch of zany, good-hearted characters. It may be worth it, especially in the mean-spirted political times we now find ourselves in! 🙂

 

[Mr.Smile12]

But Spillingthetea will get to date and fall in love with Maggie O’Connell and live amongst a bunch of zany, good-hearted characters. It may be worth it, especially in the mean-spirted political times we now find ourselves in! 🙂

Who didn't love that tension between Maggie (Janine Turner) and Joel Fleischman (Rob Morrow)!

 

[nightrider]

I’ve been looking into medical school scholarships and had a question: Do hospitals offer student loan repayment assistance if you sign a contract to work with them for a certain number of years after completing residency or fellowship?

I recently came across a scholarship that covers a portion of tuition, but it requires signing a contract to work for the hospital system after training. When I reached out for details about the commitment and percentage covered, their response was vague. They just said it depends on a "multitude of factors" and that I’d only find out once I receive an offer. One example they provided was a 1.5-year service commitment for each year of scholarship received.

I’m hesitant to apply because I don’t even know what specialty I want to pursue, let alone where I’d want to practice. Has anyone gone through something similar or have any insights on whether these types of scholarships are worth it?

I’d appreciate any thoughts or advice!

Situations do vary, but most hospital groups will offer a "tuition bonus", typically in the range of $20 to25k/year. Additionally, most groups will negotiate the length of contract. Imo, a major disadvantage of the offer you've described, and one you yourself have correctly identified, is a very constrained employment option. Given the current and projected needs for both PCP's and specialty providers, you shouldn't have much difficulty aranging a renumerative agreement while maximizing your options...I'd pass on the "scholarship."

 

[Hollow Knight]

I wouldn’t do it. Go read the White Coat Investor if you’re nervous about your loans. You shouldn’t be (at least not horribly, don’t go buy a fancy car with med school loans or anything dumb like that)