Residents & Finance

MEDICAL EDUCATION DEBT IS THE LARGEST FINANCIAL CONCERN OF MANY RESIDENTS. ACCORDING TO A SURVEY CONDUCTED BY THE ASSOCIATION OF AMERICAN MEDICAL COLLEGES,THE DEBT MEDIAN FOR THE CLASS OF 2012 WAS $170,000, AND 17 PERCENT OF RECENT GRADUATES ARE IN DEBT FOR $250,000 OR MORE.

Did You Know?

  • All student debt has increased by over 500 percent since 1999. [Federal Reserve Bank of NY, 2012]
  • Student debt passed the $1 trillion mark in 2012. [Consumer Financial Protection Bureau]
  • The delinquency rates for student loans is higher than the delinquency rate for mortgages, auto loans, and credit cards. [Federal Reserve Bank of NY, 2012]
  • 86 percent of medical students graduate with debt. Average debt burden = $162,000. [AAMC 2011]
  • 91 percent of osteopathic students graduate with debt. Average debt burden = $205,674. [AACOM 2011]
  • Only 36 percent of law students and 15 percent of MBA, PhD, MPH, DDS, etc. graduate with debt. [finaid.org 2012]
  • More than 60 percent of medical students come from families with income in the top quintile—and this has been true for the last two decades. The bottom three quintiles of family income together account for about 20 percent of medical students. [AAMC 2004]Visit Site

In a 2012 survey of interns at seven CIR hospitals:

  • Approximately 53 percent had more than $100,000 in educational debt.
  • Approximately 30 percent had more than $200,000 in educational debt.
  • Of those with greater than $100,000 of educational debt, 87 percent are concerned about this problem and 56 percent are “very” or “extremely” concerned.

A NEW CIR BENEFIT TO HELP YOU MANAGE YOUR FINANCES

In November, CIR launched a new benefit just for members to help you manage medical school debt. GL Advisor is a full-service financial advisory firm that specializes in assisting recent medical graduates with managing their student debt. GL Advisor serves as a much needed advocate to help clients lower the cost of debt, obtain payment relief as needed, and save them time so they can focus on their career. Some of the services include:

  • A Personalized Financial Plan
  • An Assigned Financial Advisor
  • Tax Preparation Services
  • Professional Investment Advice
  • Additional Financial Services like rent vs. buy analysis and mortgage support
  • And all these services are available to your spouse or domestic partner at no additional charge.

You could save $60-$125 on the annual service. Visit the CIR website to learn more and claim or your discount. www.cirseiu.org/GLAdvisor

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