Oct 12, 2013
If I have the option of paying off a 150k loan now, should I do it? Or should I try to take advantage of a loan repayment option (either through a hospital contract or a government NHSC type thing)?

Some thoughts I'm considering-
- interest would accrue and capitalize over three years (I'm pgy1) and I don't know how to calculate how much that is, but it makes me nervous since I doubt I would get my debt 100% forgiven
-I don't want to be sign a 10 year contract
- I don't know how easy it would be to get loan repayment

Anyone money saavy know how to calculate how much interest will accrue on 3 yrs on a 150k loan with capitalized interest?

Any helpful strategies/tips?


5+ Year Member
Jul 19, 2013
Resident [Any Field]
Don't know your circumstance but this may help



Author of the blog is active here, especially in the EM forums, consider reaching out

details about how you could pay that 150k off today and what your circumstances after doing so would look like may help in giving better advice.

My 2 cents: if it doesn't leave you broke and homeless, no debt and residency income = heaven. I can build from zero much easier than catching up from behind. Additionally, down the line this keeps me from being beholden to whoever is signing my pay checks; I don't have to worry about paying my bills if i butt heads with the boss over patient satisfaction or some other petty thing because I don't need 150k to live. a couple of locums/ urgent care jobs or shifts here and there I can cover myself for a year with 3-5 months of work. Don't like the contract? walk out, no problem. easier to build FU money as a physician, and an FM boarded one at that, than many other professions.

as far as others paying the loans for me, while there may be some advantages to that , where money is concerned I don't trust people as far as I can throw them. Employers don't exist to advocate for employee interests, they only do so if it helps them meet their own bottom line. The longer I'm dependent on someone else, the weaker my financial position. Doesn't mean such a strategy can't work or never pans out, I'm just not interested in playing the chess game to find out 10 years later, especially if I have the means to establish independence today.

Lots of other possibilities here. you can consider paying off portions of the loan with highest interest rates now and securing loan forgiveness for remaining chunks from employers later, for example. You can invest the 150 k if you think the investments will bring in more $$$ than your interest rate will take from your pocket(do your homework, this is usually a losing proposition).

Just my own thoughts, complete with my own biases and priorities (as you can tell, financial independence is extremely important to me), not professional financial advice.


10+ Year Member
Aug 29, 2005
Attending Physician
There are no easy answers for investment questions. It always depends on the individual. I like to live by a few generalities however...if you are young, have the money, and would like to pay for certain comforts (house, vacation, car, toys, gifts) then do it when you are able. There is no investment that guarantees your return will exceed rates of inflation or interest rates on your loans.


10+ Year Member
Jan 25, 2008
Attending Physician
Where does the 10 year contract come from? Are you saying someone offered you 150K loan forgiveness for signing a 10 year contract? If that's the case.... RUN away.