Ranking Member Chabot Examines Student Loan Debt and Its Effect on Small Medical Practices

Statement

Today, the House Committee on Small Business heard from a panel of physicians and experts on how student loan debt affects doctors considering joining or starting small medical practices.

"It is undeniable that medical practitioners play an indispensable role within our community. Small medical practices, particularly those operating in underserved areas, are vital to ensuring the health and wellbeing of Americans who otherwise would not have access to health care," said Ranking Member Steve Chabot (R-OH). "That said, given the $22 trillion debt our nation faces, I think it's important that we carefully study this issue and clearly understand whether student debt is a significant factor in deterring a physician's decision to start or join a small medical practice, or if there are other reasons why a graduate may decide to choose a different career path."

Income-Based Repayment Program Offers Option for Low Monthly Payments

"There is a program that has been available since 2009 called Income-Based Repayment. It allows anyone with a federal student loan to cap their payments at 10% of discretionary income, regardless of how much debt they have. So if you have $400,000 in loans or $100,000 in loans, your payment is the same, regardless of how much debt you have or what the interest rate is. And after 20 years [of] payments in this program, your debt is forgiven," said Mr. Jason Delisle, Resident Fellow, American Enterprise Institute, in Washington, DC. "This allows doctors who have high debts but want to pursue different careers an affordable monthly payment."

Source