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If you're a doctor wondering whether to pay off your med school loans or start investing, this guide breaks down the math, emotional factors, and a hybrid strategy to help you decide.

Introduction

After years of medical school and residency, you’re finally earning a real paycheck — but you’re also staring at six figures of student loan debt. Should you knock out your loans as fast as possible, or start investing for your future?

This is one of the most common — and most personal — financial questions physicians face. The right answer depends on your loan terms, your long-term goals, and your peace of mind. In this article, we’ll break down the math, discuss the emotional side, and offer a hybrid strategy that works for many medical professionals.

Understanding the Math — Interest Rate vs. Investment Returns

Start by comparing your student loan interest rate with your expected investment return.

• If your loans are charging 6–7%, and long-term stock market returns average 7–10%, investing may mathematically win — especially in tax-advantaged accounts like a Roth IRA or 403(b).
• However, returns aren’t guaranteed, while your loan interest is.

🧠 Example:

If you have $200,000 in loans at 6% interest and instead invest that $200K at an average 8% return, you’ll come out slightly ahead — but not without risk. If markets dip or you panic-sell, the benefit disappears.

Do You Qualify for Forgiveness? (PSLF and REPAYE)

Before rushing to pay off your loans, consider whether you’re eligible for loan forgiveness programs like:

• PSLF (Public Service Loan Forgiveness): After 10 years of qualifying payments while working at a non-profit hospital or academic center.
• REPAYE: Interest subsidies and possible forgiveness after 20–25 years of income-driven payments.

⚠️ If you aggressively pay down debt but would’ve qualified for forgiveness, you may end up spending tens of thousands more than necessary.