The government is forgiving $131,000 for recent medical-school graduates who are enrolled in the Public Service Loan Forgiveness Program, the Wall Street Journal reported.
The Public Service Loan Forgiveness Program allows students who choose a career in the federal government or with a not-for-profit organization to receive loan forgiveness. After a student pays 120 qualifying monthly payments the program will forgive the remaining balance.
"A program designed to ease the student-debt burden of teachers, public defenders and other modestly paid workers in the public sector is also set to help thousands of physicians, many of whom work for nonprofit hospitals," the article states. "When Congress created the program in 2007, the intent was to encourage young workers to seek government and nonprofit jobs that pay far less than what they’d get in the private sector."
As nonprofits buy up hospitals and private practices, an increasing number of physicians and surgeons are able to participate in the program.
"Three-quarters of hospitals are either nonprofit or owned by the government," the article states. "Physicians are particularly well positioned for big payouts. The typical borrower owed a median $162,000 upon leaving medical school in 2012."