Healthcare has a concerning debt-to-income ratio, with current student debt for nurses and physicians equaling more than half of their current annual salary, according to a new survey of the professionals.
The survey comes from Laurel Road, a subsidiary of KeyBank, and is based on responses from 500 U.S. nurses and 300 doctors (250 physicians and 50 dentists) who currently hold either private or federal student loans. The survey was active Jan. 2 through Feb. 12.
Here are four key findings:
1. On average, nurses' student debt loan amounts to 50% of their annual income before taxes. Doctors face even higher debt to income, with their loans amounting to 58% of their annual income before taxes.
2. Notably, Gen Z doctors at the beginning of their careers earn an average of $183,873 annually while facing $117,206 in student loan debt — nearly 64% of their salary.
3. On average, nurses anticipate needing 10 years to completely pay off their student loans. The average doctor expects total repayment to take closer to eight years.
4. The resumption of student loan payments in October 2023 have left healthcare professionals reconfiguring their spending and priorities, with most nurses (60%) and physicians (77%) stating their financial and spending goals changed in 2024 due to student loans, such as purchasing a home, new car or dream vacation.