Veterinarians Saddled with Student Debt: Employer Benefits Lighten the Load

Anyone who’s interacted with a veterinarian knows how important they are. Many animals depend on quality care from veterinary professionals, making their services irreplaceable. On top of animal care, they provide critical support to many industries and families in the United States (and we’d know – Team Paidly has quite a few furry family members!).

Unfortunately, the path to becoming a licensed veterinarian is an expensive journey that leaves most graduates saddled with debt. According to the American Veterinary Medical Association (AVMA), the average veterinary doctoral student graduates with a whopping $179,505 in student debt.

This presents a significant financial burden for aspiring veterinarians. When 82% of graduates carry some level of debt, it’s very likely that current and future veterinarians in your practice are facing the financial strain of making student loan payments.

Let’s get into how student debt affects veterinarians and how you can help lighten the load to avoid a care shortage.

Debt financially and mentally hurts early-career veterinarians

Many new graduates describe spending their veterinary school years living a frugal existence funded primarily by federal student loans and supplemented with low-wage part-time jobs. And once they’ve graduated, things don’t get much better: new veterinarians face high student debt payments and costly licensure requirements that starting salaries struggle to cover.

The cost of entry is steep

The average four-year tuition for a Doctorate of Veterinary Medicine (DVM) is around $179k – and that’s not accounting for the other costs of attendance like textbooks, housing, food, and transportation. Living expenses alone often exceed $100k over the course of the program, meaning students are spending closer to $300k (and some well over $400k) to earn their DVM.

As with many medical professions, the cost of entry doesn’t stop at graduation. Incoming veterinarians must complete the North American Veterinary Licensing Examination (NAVLE) and pay for licensure in their state in order to practice.

Minimum Cost of Entry

On top of initial fees, veterinarians must also pay periodically to maintain their licenses, an expense that is not typically covered by employers.

For example, in New York, a newly licensed veterinarian will spend $2,033 just on the NAVLE exam and maintaining state licensure in their first decade of practice. Add on student loan payments, and it’s no wonder veterinarians struggle to pay down their debt.

Loan payments strain veterinarians

On average, veterinarians graduate with over $179k in debt. When salaries start at $97k for new DVMs and only average around $125k over the course of their careers, it’s difficult to manage the cost of living and student loan repayment.

Sources: AVMA, BLS, Education Data Initiative, Payscale

The average debt-to-income ratio for new veterinarians is 1.4, meaning they owe roughly one and a half times the amount they make – which is markedly better than the 2.0 it was in the mid-2010s.

But don’t let the improvement fool you: 1.4 is still wildly above the average student debt-to-income ratio (0.6).

Veterinarians struggle to make ends meet when they have ongoing student loan payments. Many veterinarians say they feel as though they will never be financially secure due to their student debt and salary.

The significant debt burden has a huge impact on personal and professional decisions, like delaying major life milestones – such as purchasing a home or starting a family – since a substantial portion of their income goes toward repayment.

The financial strain also influences career choices, with some graduates opting for higher-paying specialties or regions over their preferred areas of interest.

Mental well-being is a grave concern

High student debt has more than lifestyle and career impacts – it also affects mental well-being. 50% of veterinarians report mental health issues, making burnout and declining emotional wellness serious problems.

Mental well-being is a major concern in veterinary practices as employees are not just caring for their animal patients, but also their patients’ owners. Veterinarians are regularly exposed to animal and human suffering, often encountering emotionally-difficult situations.

According to the Centers for Disease Control (CDC), the suicide rate amongst veterinarians is nearly four times higher than the national average. Some factors they attribute to the high suicide rate include:

• Demands of practice such as long work hours, work overload, and practice management responsibilities
• Ever-increasing educational debt-to-income ratio
• Poor work-life balance

It is due to these same factors – workload, student debt, and mental well-being – that more than half of veterinarians do not recommend the profession.

The veterinary workforce is facing a financial and mental health crisis, leading to a care shortage that will be evident sooner than we think.

We are headed for a veterinary care shortage

The veterinary medicine profession is experiencing rapid growth (19% through 2033) with over 4,300 openings projected each year. With the demand increasing so quickly, we cannot afford to lose veterinarians… yet we are.

44% of veterinarians are considering leaving the profession prior to retirement, and a third want to leave specifically due to worsening mental health.

By 2032, only 76% of the demand for veterinarians is projected to be met – leaving many practices and regions short of vital staff.

Source: AVMA

According to AVMA, the need to satisfy debt obligations could be the most significant factor in which regions experience a shortage.

The shortage of veterinarians in rural areas and certain practice types, such as large animal or food animal medicine, has been a longstanding concern. This shortage can have far-reaching consequences for animal healthcare, food safety, and public health.

Luckily, today’s employers are in a unique position to be able to do something about the impending shortage and ensure their clients are taken care of: help veterinarians with student loan repayment.

Employer student loan assistance could close the gap

The debt burden on early-career professionals has been cited as a contributing factor to the ongoing shortage of veterinarians in the United States.

The good news? Employer student loan assistance has proven to be an effective and underutilized solution to workforce well-being and retention issues.

Even better? Repayment benefits help everyone involved.

Repayment assistance strengthens employers

Offering student loan repayment benefits can be a powerful tool for veterinary practices and organizations to attract and retain veterinarians, particularly in areas facing a shortage. With the staggering cost of entry and the significant debt burden faced by many veterinarians, assisting with student loan repayment is a real incentive.

Employer student loan assistance benefits strengthen your workforce:

• 77% of applicants are more likely to accept a job offer from an employer with a student loan repayment benefit.
• 86% of employees would commit to a company for at least 5 years if their employer helped pay down student loans.
• 83% of companies see positive impacts on employee mental and emotional well-being with financial well-being initiatives.

With a high demand for skilled professionals, offering a student loan repayment benefit is a game-changing move. By alleviating the financial burden of student debt, you can foster a more satisfied and supported workforce, ultimately improving patient care and overall organizational success.

Debt relief supports employees

Employer student loan assistance may be strategic for employers, but it can be life-changing for employees.

For the average DVM graduate with $179k in student debt, a $150 monthly contribution would save them nearly $105k in interest and 13 years of payments*.

*Estimated savings include total extra contributions plus estimated interest savings. Assumes extra payments are applied throughout the repayment term of the loan and that employees continue to make regular monthly payments. Individual savings will vary.

With so much saved, your veterinarians can accomplish their other major goals like buying a home or starting a family, improving their overall well-being and mental health.

Plus, even a $150 monthly contribution drastically decreases repayment time, saving years of stress and financial burden, so your veterinarians can stop worrying about the past and start looking toward the future.

With so much good for both your company and your veterinarians, offering student loan repayment as a benefit just makes sense.

You can be part of the solution

As the burden of student loan debt continues to weigh heavily on veterinarians, employer student loan repayment benefits will play an increasingly important role in the veterinary field. These benefits not only alleviate financial stress for employees but also serve as a powerful tool for attracting, retaining, and supporting veterinarians in an industry facing workforce shortages.

Make a direct investment in the mental health and financial well-being of your veterinarians – Talk to an Expert on how offering student loan assistance could help you steer the future of your workforce.