Travis Hornsby on Medical School Finances

Travis Hornsby is our guest in this episode, the founder of Student Loan Planner. He is a former bond trader with Vanguard who has transitioned into a student loan advisor. He provides a great understanding of how to tackle financial issues as they relate to med school.

[1:05] How Travis got involved in this.

Travis wanted to work in the financial industry and got a job trading bonds. His girlfriend said that she had six figures in medical school loans, which caused him to dive deeper into the complexity of loans. Travis then discovered public service loan forgiveness (PSLF), which can substantially help med school graduates.

[6:54] Planning correctly.

There are nuances to student loans. Travis says that if the proper time isn’t taken to plan, these can be extremely costly.

[10:22] Average debt for a med school graduate.

The number that Travis sees is about $315,000. You could go to a school that is increasingly offering scholarships, but those are few and far between. Often, students choose specialties that pay more just so they can pay off their debt quicker. This is not quite acceptable reasoning for choosing a specialty.

[16:49] Why physicians are better off than people with an MBA or law degree.

Nobody needs an MBA to be a businessperson, so there is no barrier to entry. In law, there are not enough jobs. Additionally, there are rules in place that keep medicine a well-paying field.

[22:49] Looking beyond tuition numbers to make a decision.

If you want to be a private practice physician, prestige doesn’t matter. The patient doesn’t care where you went to school, they care that you’re a doctor. PSLF can help you repay debt regardless of which school you choose. However, it is possible that PSLF may not be offered by the time you graduate.

[28:22] Options for if PSLF is no longer offered.

Refinancing is a good option that can greatly reduce your interest rate. Travis discourages taking out private loans, but it some rare cases, it does make sense.

[31:06] Other financial advice for med school students.

Invest in taking care of your own physical and mental health. Those things will always be worth it. Do not stress about the amount you borrow; Travis has never had a physician client who has not been making less than two-to-three times the median household income in America.