Can You Buy a Practice with Student Loan Debt?
Physicians often wonder, “Do my student loans prevent me from purchasing a practice?”
It’s a fair question. Many graduate with significant debt. But the good news is student loans don’t have to stand in your way. In fact, owning a practice can help you manage your debt more effectively. Increased income and control over your schedule can make loan repayment more manageable and help you reach other financial goals faster.
Will Student Loans Affect Financing?
While student loans won’t stop you from owning a practice, they can impact your ability to secure financing. Lenders look closely at your debt-to-income (DTI) ratio and credit score:
- A lower DTI shows you can manage monthly debt payments. Income-driven repayment (IDR) plans can reduce federal loan payments and improve your ratio.
- A strong credit score improves your chances of approval and better loan terms. Making on-time payments is key—consider setting up autopay to stay on track.
Is Practice Ownership Worth It?
Despite student debt, practice ownership can be a smart financial move. It often leads to greater income, faster loan repayment, and the freedom to shape your career.
Partner with a Lender Who Gets It
At Panacea Financial, we understand the challenges and opportunities physicians face. If you’re ready to explore practice ownership, apply today and take advantage of AMS-exclusive discounts. Let us help you take the next step in your career with confidence.
Panacea Financial is a division of Primis Bank. Member FDIC.