By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
Health Works CollectiveHealth Works CollectiveHealth Works Collective
  • Health
    • Mental Health
    Health
    Healthcare organizations are operating on slimmer profit margins than ever. One report in August showed that they are even lower than the beginning of the…
    Show More
    Top News
    An Expert’s Guide To Building and Improving Endurance
    June 30, 2022
    medical assistants
    What Do Medical Assistants Do On a Day to Day Basis?
    April 5, 2022
    superfoods to help with prostate health
    10 Healthy Foods That Can Help Protect Your Prostate
    August 29, 2022
    Latest News
    5 Steps to a Promising Career as a Healthcare Administrator
    August 3, 2025
    Why Custom Telemedicine Apps Outperform Off‑the‑Shelf Solutions
    July 20, 2025
    How Probate Planning Shapes the Future of Your Estate and Family Care
    July 17, 2025
    Beyond Nutrition: Everyday Foods That Support Whole-Body Health
    June 15, 2025
  • Policy and Law
    • Global Healthcare
    • Medical Ethics
    Policy and Law
    Get the latest updates about Insurance policies and Laws in the Healthcare industry for different geographical locations.
    Show More
    Top News
    healthcare cost crisis
    What If the Health Care Cost Crisis Solves Itself?
    May 11, 2013
    Do You Need Life Insurance? What Does It Cover?
    December 23, 2022
    HIE metal plans
    The Four “Metal Plans” of Health Insurance Exchanges
    May 28, 2013
    Latest News
    How IT and Marketing Teams Can Collaborate to Protect Patient Trust
    July 17, 2025
    How Health Choices and Legal Actions Intersect After an Injury
    July 17, 2025
    How communities and healthcare providers can address slip and fall injuries with legal awareness
    July 17, 2025
    Let Your Lawyer Handle the Work Before You Pay Medical Costs
    July 6, 2025
  • Medical Innovations
  • News
  • Wellness
  • Tech
Search
© 2023 HealthWorks Collective. All Rights Reserved.
Reading: Medical Student Debt: Could Private Investment Be a Game Changer?
Share
Notification Show More
Font ResizerAa
Health Works CollectiveHealth Works Collective
Font ResizerAa
Search
Follow US
  • About
  • Contact
  • Privacy
© 2023 HealthWorks Collective. All Rights Reserved.
Health Works Collective > Policy & Law > Medical Education > Medical Student Debt: Could Private Investment Be a Game Changer?
Medical Education

Medical Student Debt: Could Private Investment Be a Game Changer?

Shady Henien
Shady Henien
Share
5 Min Read
medical education debt
SHARE

Each year, medical students incur more than $166,750 in medical school debt, according to the AAMC. Despite the organization’s conclusion that medical student debt is not a determining factor in choosing a medical specialty, the cost of education is a major concern for the future of health care.

Each year, medical students incur more than $166,750 in medical school debt, according to the AAMC. Despite the organization’s conclusion that medical student debt is not a determining factor in choosing a medical specialty, the cost of education is a major concern for the future of health care.

medical education debtMedical students and physicians across the US have made extensive time commitments during their 20s to mastering the foundations of medicine and completing a residency. New physicians today face an exorbitant amount of debt that takes anywhere from 10 to 30 years to repay. We must continue to attract the brightest and smartest students into medicine without deterring them by cost. All Americans and the newly insured 32 million US citizens are counting on my generation to become the future of medicine. We cannot afford to let a price tag deter us from this responsibility.

When a friend and I created our medical school’s first student state lobby day, the solution proposed by many legislators was to find a side job or take out more student loans. As any physician would know, medical students already work and study for more than 70 hours a week, which does not allow for earning a substantial side income.

More Read

Is Pharma “Educating” U.S. Patients in the Wrong Way?
The Nursing Shortage Myth
The Doctor Becomes The Patient: Lessons Learned From Wearing A Gown
How To Prepare For A Neurosurgical Operation
How Patients Can Receive Financial Assistance For Medication

I propose a unique business model, “Invest in a Medical Student’s Tuition Program,” (IMSTP) to help mitigate student loan debt. I began working on this idea three years ago, after I presented it to the AAMC’s Organization of Student Representatives. My goal is to create a new venture that would eliminate one of the two financial problems facing students: cost of tuition and interest rates. Because the cost of tuition is set by the university, I decided to tackle the 6.8 percent interest rate set by federal government Direct Loans.

I wondered, Could we curtail the total cost of medical students’ education by decreasing interest rates by 50 percent on loan repayments by creating a platform for private investment? IMSTP is a unique solution and the FIRST business model of its kind to help decrease the cost of attendance while incentivizing investors to make fiduciary investments in medical education.

Private investors would invest their money in a pool, from which medical students would draw their loans at a 3.4 percent interest rate. That’s half the interest rate that the U.S. Department of Education charges on its Direct Loan Program, the primary government loan program used by medical students. The lower interest rate would save students nearly $50,000 over the course of their education. Investors make money, medical students pay less… It is a WIN-WIN proposition!

The loans would have a low probability of default; most medical students ultimately take residencies and move into the working world from there. The benefits to investors include a reliable return on investment and an opportunity to do good for society.

medical schoolThe program has received some coverage in the press. I have met with numerous federal and state legislators, such as Senator Chuck Grassley (pictured at left); and I have an upcoming meeting with Iowa Governor Terry Branstad to discuss tax incentives for investors to make this financial tool a competitive alternative to current investment options.  

We owe it to the future of health care to make medical school as financially feasible as possible to as many students as possible. Please lend your support.

 

(comic: medical school debt / shutterstock)

Original Post

Share This Article
Facebook Copy Link Print
Share

Stay Connected

1.5kFollowersLike
4.5kFollowersFollow
2.8kFollowersPin
136kSubscribersSubscribe

Latest News

technology in medical research
The Tools Helping Medical Researchers See the Full Picture
News Technology
August 3, 2025
5 Steps to a Promising Career as a Healthcare Administrator
5 Steps to a Promising Career as a Healthcare Administrator
Health
July 31, 2025
holistic dental
Holistic Dentist Services Are Natural and Safe
Dental health Specialties
July 28, 2025
botox certification
Help Improve People’s Skin Health Via Botox Certification
Skin Specialties
July 22, 2025

You Might also Like

Image
eHealthGlobal HealthcareMedical EducationMedical RecordsMobile HealthRemote DiagnosticsSocial MediaTechnology

#Doctors20 & You Conference: #mHealth, #ePatients, #Collaboration

May 25, 2012

Tackling the Side Effects of Parkinson’s Treatment

April 17, 2016

Making The Decision To Outsource And Choosing The Right IRO Partner

October 19, 2015

An American Med Student Student Learns New Skills in Nepal

June 22, 2012
Subscribe
Subscribe to our newsletter to get our newest articles instantly!
Follow US
© 2008-2025 HealthWorks Collective. All Rights Reserved.
  • About
  • Contact
  • Privacy
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?