Medical education debt is 4.5 times higher in 2003 than it was in 1984, while average tuition and fees are 2.7 times higher in private medical schools and 3.8 times higher in public medical schools. These findings are part of a new report released April 26 by the Washington, D.C.-based Association of American Medical Colleges (AAMC).
The report, Medical School Tuition and Young Physician Indebtedness, also found that in 2003, graduates of private medical schools had incurred a median debt of $135,000, while the median debt for graduates of public medical schools was $100,000. By contrast, in 1984, private medical school students graduated with a median debt of $27,000, and public medical school graduates had a median debt of $22,000.
At least part of this growth is due to increases in medical school tuition over the past two decades. The report found that since 1984, median tuition and fees have dramatically outpaced the consumer price index, increasing by 165% at private medical schools and by 312% at public medical schools. In constant dollar terms, the increases have been 50% and 133%, respectively.
Other potential contributing factors to medical student debt mentioned in the report include indebtedness carried forward from undergraduate college borrowing, and consumer debt such as credit cards, car loans, and mortgages.
But the news is not all bad, researchers found. The report commends scholarship programs and improved repayment options such as consolidation loans and service-related loan forgiveness awards like those offered through the National Health Service Corps. Overall, researchers found that while medical students' indebtedness has increased, "loans are readily available ... and repayment terms are generous."
Despite increases in tuition and debt, "a career in medicine remains an excellent investment, with physicians still earning higher incomes than most other professions," according to the report.
Although it concludes that loan repayment is not yet a serious problem for most physicians, the AAMC cautions that continued increases in tuition and fees may eventually hinder the recruitment of a diverse set of well-qualified physician candidates.
Researchers cautioned against making medical degrees financially undesirable. "We must make a concerted effort to ensure that medical education is within reach of all qualified students," said AAMC President, Jordan J. Cohen, M.D. in a press release. "Otherwise, student debt may become unmanageable if expenses continue to rise and physicians' incomes remain flat."
In conjunction with the report's release the AAMC has created a committee made up of financial aid administrators, student affairs officers, students, residents, and a medical economist "that will explore potential ways to reduce medical education costs and enhance the ability of graduates to repay debt during residency and early practice."
By Elizabeth B. Guerard
NASFAA Assistant Director of Communications
Posted May 18, 2004 on
www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
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