Medical Professionals and the Student Loan Debt Crisis: How Employers Can Help

Healthcare providers and employers in the US are facing unprecedented challenges regarding employee shortages, retention, and worker satisfaction. The Association of American Medical Colleges (AAMC) predicts a shortage of 37,800—124,000 physicians in the next ten years. Forecasts for other healthcare workers – such as nurses and therapists – also predict significant deficits.

A major factor exacerbating this crisis is the high student loan debt burdening many healthcare professionals. However, the student loan debt crisis is also an opportunity for hospitals and healthcare employers to step up and offer innovative solutions. Employers can help workers reduce debt and stress levels while alleviating personnel shortages and low retention rates in the industry.

Let’s look at what student loan debt looks like for medical professionals and how employers can help alleviate it.

The burden of student loan debt for healthcare professionals

Student loan debt in the healthcare industry is high because of the education required. On average, doctors undergo 11–16 years of education. This includes four years of pre-med undergraduate studies, four years of medical school, and a residency of three to seven years, with the potential for more time to specialize with a fellowship.

Registered nurses require two-year Associate Degree in Nursing (ADN) or a four-year Bachelor of Science degree in Nursing (BSN). Nurse practitioners need a Master of Science in Nursing (MSN), which requires another two years of study. Doctors of Nursing Practice (DNPs) must have a BSN or MSN and an additional three to five years of full-time study.

Average student loan debt for doctors

A doctor’s average student loan debt is $243,483, more than seven times that of the average four-year college graduate. Paying off medical school debt can take 10–30 years, excluding undergraduate student loans.

Average student loan debt for nurses

The average student loan debt for nurses ranges from $19,928 for ADNs with an associate’s degree, to $47,321 for nurses with a master’s degree, such as APRNs, and $187,787 for nurse practitioners with doctorates. The average time to pay off student loan debt for an MSN is 18 years.

The role of healthcare employers

Social and economic conditions like the COVID-19 pandemic have exacerbated the current healthcare industry crisis, contributing to record personnel shortages, employee burnout, and dissatisfaction. Inflation and economic downturns have also impacted to the situation. These conditions create a challenge for healthcare employers. They are a call to action to address the core issues, especially student loan debt, to help ease the burden on workers.

Solutions in partnership with student loan experts

Through Laurel Road Student Loan Freedom,^SM we provide tailored student loan solutions for healthcare professionals in collaboration with employers. Employees start with a free 1–1 consultation with one of our specialists who can walk them through their all their student loan options, help them understand their eligibility for federal student loan forgiveness, and develop a customized plan.

Advantages of benefit program implementation

Offering student loan benefits can be a key strategy for healthcare employers in today’s marketplace where45% of workers now consider loan repayment the most critical benefit. These benefits can contribute to employees’ financial wellness and reduce financial stress, which can mean a healthier, more supportive workplace culture, and better patient care.

Explore student loan benefits for employees

Student loan benefits address a vital need by helping workers find a path to debt reduction, loan forgiveness, and financial security.

Offering student loan benefits can aid in recruiting and retaining top healthcare talent. By addressing this need, employers can help rejuvenate an industry plagued by personnel shortages and contribute to quality patient care for all.

If you’re looking to implement student loan benefits, Laurel Road offers both customizable and turnkey solutions, and can work with you to find the package that best meets your needs. To explore how your organization can benefit from offering student loan debt solutions, visit our employer partnerships page.