Handling Finances During Residency

While you are looking forward to this next step in your medical career, you may also be experiencing mixed feelings of excitement as well as trepidation about the decisions that you must make in a short period of time. The following suggestions are provided to help you address important issues and to help you transition from medical school to residency.

With medical school behind you, you’re certainly due for congratulations. But that’s not all that’s due – loan repayment is just around the corner – either beginning now or after residency. Fortunately, when it’s time to repay, you have flexibility in structuring your repayment schedule by choosing the plan that works best for you.

Interested in a service career, or want to reduce your medical school debt by working in public service or the military? Good news—there are numerous possibilities available. With each program, financial benefits and requirements vary; however, some of the more common opportunities are highlighted below. 

During medical school, it’s likely your financial questions will revolve around student loans and money management. However, upon graduation, additional expertise may be needed to help manage the other areas of your financial life (investments, retirement, insurance, taxes, estate planning, and more).

Your answers to the following questions may help you determine if loan consolidation is right for you. 

Fourth-year medical students may encounter expenses not included in the standard student budget and may find it necessary to borrow additional funds through a residency and relocation loan. If you are considering a residency and relocation loan to cover some of your additional expenses associated with the residency match (traveling for interviews, related meals, lodging) or relocation costs, it’s important to understand how these private loans differ from federal loans.

Disability insurance offers financial protection for future income if you experience a disabling sickness or injury. This may be particularly important for physicians who are unable to work in their chosen specialty.