Should I Pay Off My Student Loans Early or Invest?
If you’re a physician facing the classic question of whether to pay off student loans or invest, know that you’re not alone. After years of training, most doctors begin their careers with a surge in income and substantial debt.
With the average medical school debt now exceeding $200,000–$300,000, choosing a path forward isn’t just about numbers; it’s about setting the trajectory for your entire financial future.
Managing wealth as a physician is a uniquely complex task. There’s no single “right” answer; only a series of decisions that need to align with your career, life goals, and stress tolerance.
As Matt Sandberg, financial advisor and physician-specialist at Cornerstone Wealth, puts it:
“Physicians often find themselves with both overwhelming debt and new investing options. The right answer is rarely obvious—and the stakes are high for your financial future.”
Want to approach your next step with confidence?
Keep reading for key considerations, or download our complete guide for a loan strategy plan.
Understanding Your Student Loan Situation
Financial Planning for Physicians: The Student Debt Challenge
For many doctors, student loan repayments are an ongoing reality well into their careers. Options to refinance or secure loan forgiveness can be limited.
In fact, over 60% of mid-career physicians still carry some form of medical school debt, which can significantly impact their credit score.
Monthly payment
Loan type
Interest rate
These all shape your most effective strategy.
Managing Wealth as a Physician—More Than Just Debt
Physicians face another unique challenge: balancing their ability to pay down debt quickly with their desire to invest for their family’s future. They also need to build savings, especially if they’re planning to buy a home, start a practice, or save for children’s education.
This is where a tailored practice loan strategy becomes essential.
Creating a Financial Plan for Physicians
As your financial plan as a physician evolves, it’s critical to look beyond the total balance.
Ask yourself:
What are your loan rates?
How does the interest rate impact your payments?
Are you eligible for loan forgiveness programs?
Can you consolidate or refinance for a better deal?
Partnering with Physician Family Financial Advisors
Working with a physician family financial advisor helps you see the big picture and develop a sound investment strategy. It makes these decisions much more manageable by integrating debt payoff, investing, tax planning, and practice transitions into a cohesive strategy.
Should I Pay Off Medical School Loans or Invest?
Deciding whether to prioritize early payment on your student loans, refinance your loans, explore loan forgiveness options, or invest to benefit from compound interest is a crucial decision for physicians.
If your loan interest rates exceed 6%, quick repayment often provides the best return. If they are below 5%, long-term investing usually proves more advantageous.
Why Employer Match and Balance Matter
Always grab every available employer retirement match; it’s essentially “free money.”
As Matt Sandberg says, “Physicians should always take full advantage of employer retirement match programs—that’s an instant, risk-free return and should always come before paying extra on loans.”
Building a Strong Financial Plan for Physicians
The smartest route isn’t always picking just one path.
“For many physicians,” Matt adds, “blending loan payments and investing leads to greater satisfaction and long-term financial growth.”
Financial Services for Physicians: Your Unique Needs
Managing wealth as a physician requires more than just standard advice. Your financial plan needs to adapt to a quickly changing career and family life, covering:
Practice loan strategies
Debt management
Credit scores
Physician Family Financial Advisors
A physician family financial advisor understands these complex layers—student loans, investments, risk management, and family priorities—and ties them into a cohesive plan.
As Matt Sandberg explains, “What sets successful physicians apart is expert advice tailored to their unique journey—not generic solutions.”
Practice Loan Strategy & Managing Wealth as a Physician
Many doctors discover the best financial plan combines both steady loan payments and ongoing investing.
This is especially crucial for those heading toward practice ownership or major life milestones.
The Hybrid Approach
A hybrid strategy allows you to make progress on debt repayment and manage payments while investing in your future.
Building flexibility for opportunities such as starting a practice or expanding your family is key. “The physicians who review and adjust their plans regularly tend to achieve the greatest peace of mind,” says Matt Sandberg.
Student Loans vs. Investing: A Mid-Career Guide
Building the right financial plan for physicians demands more than quick answers—it requires a strategy tuned to your career, family, budget, values, goals, and understanding the impact of the interest rate.
Our comprehensive guide, “Student Loans vs. Investing: A Financial Strategy Guide for Physicians,” offers:
Step-by-step frameworks
Key statistics
Physician case studies
Actionable checklists
Get the insights and clarity you need—download the full guide here or take control of your financial future and schedule a consultation with physician financial planning advisor, Matt Sandberg, today.
This is for informational purposes only and does not serve as personal advice. Please speak to a qualified representative regarding your unique circumstances. Links within this blog are not associated to Cornerstone Wealth and are subject to change. Hyperlinks will take you to a third-party website whose content Cornerstone Wealth does not control. Investment advisory services offered through Cornerstone Wealth Group, LLC dba Cornerstone Wealth, an SEC registered investment adviser.
