Doctors and nurses staggered by impact of student loan payments

A new survey is pulling back the curtain on the stark financial realities facing healthcare professionals, with many reporting amber-alert levels of student loan debt.

The new poll by Laurel Road – which surveyed 500 American nurses and 300 professionals from across the U.S. – highlights the high cost of specialized education in healthcare, with daunting levels of debt across the healthcare sector.

The nurses surveyed reported an average pretax income of $80,695, with average student loan debt of $40,611. Doctors reported even higher figures, earning an average of $323,693 before taxes while shouldering an average debt of $188,317.

The situation was even more dire for early-career doctors, with Gen Z doctors reporting student loan debt of as much as 64 percent of their $183,873 average annual salary.

Since the government officially lifted the moratorium on federal student loan repayments, the financial burden has been a source considerable anxiety among health care professionals. Approximately 75 percent of doctors and 69 percent of nurses said they “always” or “often” feel anxious as a result of their student loan balances.

Student debt casts a long shadow for many respondents. When asked how much time it would take them to pay off their student loans, nurses estimated they’d need 10 years on average, while doctors forecast it would be closer to eight years.

Despite this, a significant portion of respondents prefer to discuss their financial woes with family rather than seek professional advice. Only 56 percent of doctors and a mere 32 percent of nurses said they’re likely to consult with a financial expert.

As the student debt clock resumes ticking, the majority of health care professionals have had to adjust their financial sails, with 74 percent of doctors and 61 percent of nurses reallocating funds to meet their payment obligations.

Even more doctors (94 percent) and nurses (88 percent) said they’ve had to cut back in other areas, such as travel (35 percent of doctors and 42 percent of nurses), dining out or ordering in (30 percent and 40 percent, respectively), and retirement savings (28 percent and 33 percent, respectively).

All in all, more than half of doctors (77 percent) and nurses (60 percent) said they’ve had to put certain financial goals they had for 2024 on the back burner, including:

• Buying a new car (33 percent of doctors and 35 percent of nurses);
• Buying a house (33 percent for both groups); and
• Going on a dream vacation (32 percent and 35 percent).

Related Topics: retirement planning, Student Loans