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Washington, D.C.— Today, Rep. Nydia M. Velázquez (D-NY), Chairwoman of the House Small Business Committee convened a panel of medical doctors, professionals, and students who shared their stories on how skyrocketing student debt has hurt their ability to start or work at a small medical practice.

“The level of student debt saddling our young people is nothing short of a national crisis and it’s hurting entrepreneurship,” said Chairwoman Velázquez. “Addressing this crisis requires us to have an honest conversation about the rising cost of education in this country, how young people will pay for it, and how to reduce the $1.5 trillion our nation currently holds in student debt.” 

“Being a small-practice owner, I knew the risks and opportunities of starting a small business, and the variables—many out of my control—that come into play when running a small practice in a rural area,” said Sandra Norby, PT, DPT Chief Executive Officer, HomeTown Physical Therapy, LLC in Des Moines, IA. “But one variable stands out that continues to have a growing impact on the ability to recruit and retain staff and keep my business open—the impact of student loan debt.”

“Considering my own loan burden as well as the possible future loan burden for my husband, our student debt impacts our lives on personal, professional, and emotional levels,” said Dr. Lauren Wiese, Orthodontic Resident, University of Maryland School of Dentistry. “My initial dream was to own my own practice and run a small business, but we are not in any position to be able to do this any time soon, likely not for the next 10-15 years.”

“Sometimes my medical residents who really enjoy primary care struggle with the decision to choose it as a career,” said Dr. Tracey L. Henry, MD, MPH, MS, FACP Assistant Professor of Medicine, Emory University School of Medicine and Assistant Health Director, Grady Primary Care Center. “I hear from them concerns about things like administrative burdens, low reimbursement rates, and burnout. For those issues I can offer a rebuttal. However, if they mentioned their student loan debt to me, that is a harder sell. So in the end, I advise them to go with their heart and do what they enjoy, but I do so knowing that this is an issue I have not been able to solve for myself.”

Today, over 40 million Americans have some form of student debt. Meanwhile, over the past 30 years, the cost of higher education at public four-year institutions has skyrocketed, increasing by 213 percent from 1988. For the medical field, this has led to a shortage of doctors, especially in fields like primary care and mental health and by 2030, the Association of American Medical Colleges expects the workforce shortage to expand to over 100,000 doctors nationwide. Encouraging more doctors to open small private practices could offer a solution to fill the gaps of doctor shortages, especially in rural and underserved communities.

“Make no mistake—incentivizing doctors to open local practices in rural and underserved communities is both a small business issue and a public health one,” said Chairwoman Velázquez. “In Congress, we ought to be focused on how the government can help encourage young professionals to harness this country’s legacy of entrepreneurship, yet as has become increasingly clear, we cannot do so without tackling the growing crisis of student loan debt.”

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