Resident and Fellow Financial Literacy: A Student Loan and Debt Management Survey

Student loan debt is a well-documented problem for physicians in the United States, with the onus of repaying these loans often falling on the individual. For traditional United States allopathic medical students, financing their education can come in many forms, including loans directly from the Federal Government. This study sought to evaluate the student loan financial literacy level in medical trainees. We hypothesized that current residents/fellows would demonstrate a low-level of student loan financial literacy. We performed a cross-sectional, anonymous survey at a single academic medical center. Our survey consisted of a 49-question, validated survey consisting of two sections: “Basic Financial Terms for Student Loans” and “Current Financial Planning Status, Financial Attitudes, and Behaviors.” We received responses from 225/715 (31.5%) trainees. Of this group, 78.7% had student loans, with an average loan burden of over $215,000, which is above the national average of $190,000 student loan debt burden. The respondents’ overall financial literacy was lacking in key areas. While respondents scored well on basic questions such as loan term lengths and compound interest, they scored poorly on questions regarding Public Service Loan Forgiveness and Federal Income-Driven Repayment programs offered in the United States. For instance, only 25% of respondents understood that the Federal program called Revised Pay as You Earn (REPAYE), allowed for an interest subsidy. Additionally, nearly half, 47%, of physicians believed that a privately refinanced loan could re-enter government programs. Ultimately, not understanding the basic framework of student loans exposes the borrower to significant financial risks, as calculated in this paper. We believe that basic financial knowledge gaps should be filled through a systematic personal finance curriculum, tailored towards doctors in training, ultimately improving each participant’s financial outlook. However, further longitudinal research is required to determine the impact of said education.