Dealing With Debt Students of medical schools in US face the hard challenge of repayment of loans
that they take to support their higher studies in this field. The average debt that accrues on a student of American medical graduate is $ 155,000 on an average plus the interest. This debt becomes a hurdle for them to choose the preferred career after the study is over.
Many students leave the academic arena for lucrative pasture with the intention of repaying the loan easily, thus the real purpose of serving the humankind through their noble service is lost. Industry is one such place, where the earning possibility is manifold compare to the academic research and practice in University medical centers.
Robert Vonderheide with his desire to become a distinguished clinical researcher in some renowned research institution acquired MD from Harvard Medical School, completed a Doctor of Philosophy in Immunology at the University of Oxford, UK, and then spent three years as residency and a research fellowship. He was well poised to fulfill his dream; however, he faced the dilemma between fulfilling his dream and the temptation of the industry. On one hand, he had the opportunity to make good for the humankind, on the other, the quick repayment of debt. Robert finally let go the industry and now is an Associate Professor of Medicine and Investigator of the Abramson Family Cancer Research Institute at the University of Pennsylvania. Vonderhiede could turn away his temptation because of
Damon Runyon Cancer Research Foundation Clinical Investigator Award that he received in 2000, which included his educational loan repayment.
The average debt figure of $ 155,000 arrived with an increase of 6% to 7% per year, which was $ 104,000 in 2002, as per Association of American Medical Colleges (AAMC). This is indeed a burden for the medical graduates as they feel the burden swells with the interest if not paid back quickly.
In the 1990s, many Universities felt the dearth of physician scientists, and the matter was splashed in many medical journals that worked as a general warning. In response to this, Damon Runyon came forward with loan repayment offer. NIH (National Institute of Health) that helped only intramural NIH investigators widened the service to medical scientists in 2000. The idea of Damon Runyon Award was to help clinical scientists to stay back instead of looking for other better money options available a plenty. Since 2000, 48 awards were given, and 33% of that took the advantage of loan repayment up to $ 80,000, informed Yung Lie, the Scientific Director of this foundation.
Even though the loan repayment programs available now are not adequate to get rid of the loans quickly, but certainly helps in reducing the burden considerably. The success rate of loan repayment and admission to a program vary making one third and half respectively. The conditions for applying to NIH-LRP (Loan Repayment Program) are to be US citizen and permanent residents with a doctoral program like M.D., Ph. D., D.O., D.D.S., D.M.D., or Pharm.D, and engage in clinical or patient oriented research at least half of thier time. Other parameters for getting LRP sanctioned are that their debt must be more than 20% of their current income their prospective to follow a long-term career research. Only about one third of the applicants get selection in LRH. The tenure of the LRP is two years, and can be renewed by applying further for two more years, which is based on the need. For application the time set is 1 September to 1 December. All other detail is given in the LRH web site. NIH has some more different loan repayment programs given in their web site.
Federally subsidized student loan repayment has become tougher as the Congress changed the rules for repayment in 2007. The students in the residency period have to start repaying their loans, the changed rule stipulates. In case of extreme financial hardship, the residency period may be considered, added the source. Interest on the principal amount too is included in the deferment period, and it accumulates immediately after the completion of graduation.
A study in 2008 by the Journal of the American Medical Association showed that students with less than $ 100,000 debt are likely to pursue research career. Loan repayment programs might induce extra interest in students for research career, said Donna Jeffe, the main investigator of JAMA study and Health Behavior Researcher of Washington University, St. Louis.
Despite all these adversities, the students still pursue academic medicine due to their keenness in doing something that can bring a paradigm change in the standard of care and treatment of diseases, said Christine Chung, an Assistant Professor at the Vanderbilt University School of Medicine, Nashville, who received loan repayment from NIH and the benefactor of Damon Runyon scholar.