[ad_1]
For new veterinary school graduates, an important component of financial health and success is the ability to start repaying any student loans. New data from AVMA’s 2024 survey of graduating seniors offer some mixed news on this front.
What the data show
The average debt-to-income ratio, which measures the relationship between veterinary student loan debt and anticipated annual income after graduation, was 1.4 in 2024 for new veterinary graduates entering full-time employment. This is up slightly from 1.3 in 2023, but substantially lower than values throughout much of the 2010s, when the average debt-to-income ratio often exceeded 2.0.
As today’s chart shows, 3 in 4 new graduates (74.9%) had debt-to-income ratios below 2.0 in 2024, and more than half (58.8%) had ratios below 1.5.
What does this mean?
A debt-to-income ratio of 1.4 is considered manageable for a new graduate to pay down without inducing financial stress. Since the 2024 average lands right at this level, this can be considered an encouraging sign.
However, the data also highlight disparities within the graduating class of 2024: 42.2% of graduates had a debt-to-income ratio of 1.50 or higher, including 12.3% with a ratio of 2.50 or higher. This makes debt more challenging to repay, often requiring income-driven or extended repayment plans, loan forgiveness, employer assistance, or other resources to help the veterinarian achieve financially stability.
The data reported here reinforce the importance of continued focus and support for early career veterinarians to manage their debt.
Additionally, it will be important to monitor how the debt-to-income ratio evolves in coming years. If it continues to climb as it did from 2023 to 2024, new veterinary graduates may face a more difficult financial situation as they begin their careers.
What is the AVMA doing about student debt?
The AVMA’s My Veterinary Life® website provides a suite of empowering tools to help veterinary students and early-career veterinarians achieve and maintain financial stability. These include information on loan repayment strategies, student aid, financial planning, and money management.
Another way in which AVMA is active in the student debt space is by supporting research to identify resources—such as online educational debt counseling—that can help move the needle in boosting confidence in new graduates as they repay their debt. Read about this research here.
The AVMA also is committed to championing public policy solutions that reduce veterinary debt. Learn more here about the AVMA’s work at the federal level to combat high debt burdens.
[ad_2]
Source link