Medical school is a significant investment. The median cost of attendance for a public medical school was nearly $300,000 in 2025, according to the Association of American Medical Colleges (AAMC). Private schools may be even more expensive. With such a steep price tag, it's not surprising that many students turn to loans to cover the cost. In fact, 70% of all medical students graduate with education debt, owing an average of $223,130.
Fortunately, medical student loan forgiveness programs can provide some relief. Available through the federal government, individual states and research and health care organizations, these programs may provide partial or full loan forgiveness of your loans based on your employment or service.
What is medical school loan forgiveness?
Medical school loan forgiveness is the cancellation of student loan balances for health care workers practicing in nonprofit settings, government agencies or high-need areas.
The National Center for Health Workforce Analysis projects a shortage of 141,160 full-time physicians in 2038. This ongoing nationwide shortage, especially in certain areas and specialties, underscores the need for loan forgiveness incentives. The hope is that, without the stress of worrying about student loan debt, more people will opt for a medical school education.
Borrowers can pursue two main types of medical school loan assistance:
- Loan forgiveness: While specifics vary by program, medical school loan forgiveness programs typically forgive some or all of your remaining student loan balance once you complete the program's requirements, such as years of employment with a qualifying employer.
- Loan repayment assistance: Loan repayment assistance programs give you money to repay your loans in exchange for a service commitment. For example, a program may award you $20,000 for a two-year service term.
Federal programs only offer forgiveness for federal education loans, such as Direct Subsidized or Unsubsidized Loans, while other programs may offer forgiveness for both private and federal loans.
Types of medical school loan forgiveness programs
Several types of medical school loan forgiveness programs exist, with eligibility dependent on where you live, your types of loans, your specialty and other factors. Physicians and other health care professionals may qualify for one of these loan forgiveness or repayment programs.
Public Service Loan Forgiveness (PSLF)
- Eligible loans: Federal student loans
PSLF is a program exclusively for federal student loan borrowers. It provides forgiveness of your remaining balance after you work for a qualifying nonprofit organization or government agency for 10 years while making 120 qualifying monthly payments. Under the PSLF program rules, payments made under an income-driven repayment (IDR) plan count as qualifying payments.
The Federal Student Aid office encourages borrowers to use the PSLF Help Tool to verify their employment and loan eligibility. The tool will also generate a letter for your employer to sign for employment verification, and you can track your progress toward loan forgiveness.
Loans forgiven through Public Service Loan Forgiveness are exempt from income taxes.
Income-Driven Repayment (IDR) Plans
- Eligible loans: Federal student loans
IDR plans base your monthly payments on a percentage of your discretionary income, so you may be able to significantly reduce your payment amounts by enrolling in an IDR plan. If you still have a balance at the end of your 20 or 25-year term (the term varies depending on your loan types and repayment plan), the government forgives the remaining balance.
However, there is a catch: Your loans forgiven under an IDR plan are taxable as income.
National Health Service Corps (NHSC) Loan Repayment Program
- Eligible loans: Federal and private student loans
The NHSC program is for licensed care providers who work in a designated health professional shortage area at an NHSC-approved site. Eligible primary care providers can receive loan repayment funds of up to $75,000 to complete an initial two-year term, with the option to continue service through one-year contracts. Non-primary care providers can receive up to $55,000.
NHSC loan repayment funds are exempt from federal income taxes.
Indian Health Service (IHS) Loan Repayment Program
- Eligible loans: Federal and private student loans
Through the IHS program, health care professionals who agree to work for at least two years in a practice serving American Indian or Alaska Native communities can qualify for $50,000 in loan repayment assistance.
The program funds are taxable as income. IHS will pay 24% of your federal tax liability, but you are responsible for all other taxes.
National Institutes of Health (NIH) Loan Repayment Program
- Eligible loans: Federal and private student loans
The NIH Loan Repayment Program provides eligible professionals working in qualifying roles in biomedical or biobehavioral research with $50,000 in loan repayment assistance per year.
These funds are taxable as income; the program will make a payment to the IRS equal to 39% of the loan repayment to help reduce the tax impact.
Military Health Professions Loan Repayment Program
- Eligible loans: Federal and private student loans
Some branches of the military, such as the Army and Navy, have their own loan repayment programs. Award amounts and service commitments vary by program. For example, eligible Army participants can receive up to $40,000 in loan repayment assistance for certain specialties.
State-based programs
- Eligible loans: Varies by program
To attract professionals in high-need fields like health care, some states have their own loan repayment assistance or forgiveness programs:
- Arizona Loan Repayment Program: Physicians and dentists who commit to working in a designated health professional shortage area can qualify for up to $65,000 in loan repayment assistance in exchange for a two-year term.
- Pennsylvania Primary Care Loan Repayment Program: Physicians, dentists and psychologists who commit to working full-time in clinics in underserved areas can qualify for up to $80,000 in loan repayment assistance.
Visit your state education agency to find similar programs in your area, or search the AAMC database for potential programs.
How to apply for medical school loan forgiveness
Eligibility requirements and application processes vary by program. In general, to apply for medical school loan forgiveness, you'll need to complete the following:
- Collect loan documentation: Loan forgiveness programs usually require applicants to submit recent loan statements showing the loan account number, lender and outstanding balance.
- Verify employment: The program will likely require a letter of employment verification from your employer's human resources department.
- Service requirement: Health care professional loan forgiveness programs typically require you to work for an eligible employer for a specified period.
View the program's website and guidelines to ensure you meet the program requirements.
Manage your medical education investment
Medical school is a significant investment, but it can be well worth the cost for a satisfying, rewarding career with high earning potential. Medical school loan forgiveness programs can make your education more manageable by helping you with partial or total loan forgiveness.
If you don't meet the requirements for medical school loan forgiveness due to your employment, years of service or loan type, you can look into refinancing your loans. Student loan refinancing with Citizens may help you qualify for lower interest rates or different terms that make your loan payments more affordable.†