How to Decide if Medical School is Worth It

Being a doctor is a noble career choice. It has many perks and can be very fulfilling. Many doctors also make very good money. There are, however, also a few drawbacks that make many doctors ask: Is medical school worth it?

Med school debt is one of these drawbacks.

The average medical graduate leaves med school with $183,000 in debt. When you factor in interest on this amount, the total repayment can easily heap up to $480,000. Not only does this mean you’ll likely be paying off debt for a few decades, but you’ll have a large chunk of your monthly income eaten up by high debt repayments.

Considering the above, it’s natural to ask, is it all worth it? Let’s take a look at some of the factors that will determine the answer to that question.

Will Medical School Be Worth it For You?

The answer to the question “is medical school worth it?” (financially speaking) will depend on different factors. Many people have big money in mind when thinking of becoming a doctor but they don’t factor in the huge amount of debt most doctors have to deal with. Is taking on all this debt worth it? Here are some of the factors that could influence your answer.

What Speciality are You Interested in?

Your field of specialty will determine how much you will be earning one day. Some specialties can earn twice as much (or even more) as others. Your ability to repay your med school debt will be directly affected by how much you earn after graduating. Sure, most new graduates don’t make a lot but what are your prospects in the long run?

Although your income and ability to pay your debt shouldn’t be the only deciding factor when determining whether medical school is worth it, it is an important factor to keep in mind.

How Much Will Your Education Cost?

The cost of your education will impact how much debt you’ll have to pay back after graduating and how long you’ll be stuck repaying it. Tuition fees don’t need to be a deal breaker when deciding is medical school worth it, you might just want to consider studying at a cheaper school.

The average cost of attending one year at a public medical school is currently around $35,932 for in-state students. If you are out-of-state, your average will be around $60,543 for a public medical school. This cost doesn’t even include your books, housing, transport or day to day living expenses.

Where are You Willing to Live After School?

Where you live will determine what you earn and what your cost of living is. Believe it or not, your money will take you further in Minneapolis than in Chicago. If you live in an area that is more expensive or where you earn less, it can put more strain on your finances and your ability to repay your debt. This will definitely influence whether all your hard work and the heaps of debt you’ll have to repay is worth it.

5 Tips for Saving Money While in Med School

1. Make a Budget and Stick to It

This might sound old and boring, but it works. In fact, it is essential. There are a lot of budgeting tools and apps available online, like Mint. When budgeting, make sure you allocate an amount for every category, even if you don’t expect to spend any money on it. For example, if you don’t have any additional cash for entertainment and movies this month, make your budget $0.

If you use an automatic tracking app, the moment you spend any money in that category you’ll be notified you are over budget.

Being over budget is not a good thing when you are trying to save money. So instead of stealing from your savings to compensate for your indulgence, rather reallocate money you would have spent otherwise to this indulgence. This will help keep your savings saved and your spending money spent.

2. Look for Inexpensive Housing

Apart from tuition, housing is most likely the single largest expense you’ll have while at med school. Trying to cut down on this category might be a good idea. This doesn’t mean you should compromise on things like safety, but if you can let go of some luxury and do your homework on what options are available, your finances will thank you in the long run.

Ask some of the other students or doctors what area they stay in and if they can give you a few tips. Keep your ears on the ground for great housing opportunities or a fellow student looking for a housemate. Sharing is caring and definitely also cheaper.

3. Cut Down on Subscription Services

Some subscriptions services will be essential while you are in med school, like an internet subscription and a smartphone plan for example. There are, however, some subscriptions that are not essential and can be regarded as luxuries. These include cable (over the air TV is free), a gym membership (especially if you don’t use it) and things like video streaming memberships.

Staying in shape is great and important for your health, but you don’t need a gym membership to stay on track with this. There are many ways you can exercise at home or outside in the fresh air.

4. Eat Out Less, Cook In More

When stress is high and time is little, getting takeout is an easy option. But, it is also an expensive (and usually an unhealthy) one as well. You might not be able to make a homemade meal every day, but food prepping is a great way to plan ahead and save time.

You can also work together with your housemates and make turns on cooking. There are many creative ways to do home cooked meals quick, easy and healthy and save the extra eating out cost.

5. Sell Your Books!

Even though some textbooks are not expensive, the cost adds up very easily. Once you are finished with your books, consider selling them to someone else who needs them. You won’t need all your books again and there is probably someone out there who would be very thankful to buy a second-hand book for a cheaper price. There are platforms online where you can sell old textbooks or you can just find someone in your school.

Worried about the Cost in the Long Run? Consider Refinancing

The cost of med school can run up quite quickly and before you know it you find yourself in heaps of debt with sky-high interest you are struggling to repay. If this sounds familiar you should consider refinancing your med school loans.

Refinancing is when you take out a new loan to repay all your existing loans. When refinancing, your new loan will have a better interest rate than your existing loans, bringing down the monthly payment and saving money in the long run. Not only is this a great way to save money, but if your monthly payment is lower it will definitely help ease the strain on your monthly cash flow.

You might also be able to pay off your loan sooner with the new and improved terms on your new loan, so consider refinancing your student loans!

Conclusion

Whether incurring heaps of debt with running interest is worth the fulfillment and money you’ll get from being a doctor are up to you. If you graduated med school and you feel it’s not because you are drowning in med school debt, consider refinancing your student loans. Not only could it ease your financial burdens, but it can help bring the sparkle back in your eye when you are finally able to focus on what being a doctor is actually all about.

Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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