Debt. Payments. Interest. Owing money. Losing money. Trapped.
All these words can create anxiety or optimism depending on how we view the world. The reality is that veterinarians who have graduated and those who are graduating experience higher than normal levels of loans compared to other medical professions. About 10 years ago, the student loan to income ratio was 3 or 4 to 1 for most veterinarians. In simple terms this means debt owed is 3 or 4 times greater than the starting pay out of graduation. Fast forward to 2026, and the ratio has decreased significantly, and the range is now between 2 and 3. Veterinary school costs have grown, yet the starting pay for a veterinarian has grown faster.
Before we get into the weeds, let’s chat about why loans exist in the first place. In a perfect world, we would use cash to pay for everything and never depend on borrowing from anyone. The problem is when we first start off in our careers, most do not have that type of money available to pay out of pocket. Debt is basically an advancement on future income. This applies to school degrees, home purchases, business start-ups or purchases, and credit cards. We finance a home and make payments with the income we earn. Depending on our lifestyle expenses, we use a credit card to cover bills today to pay them later once we receive the next paycheck.
On the bright side, general practice veterinarians earn at least $100,000 with the possibility for production while others, such as emergency or specialty vets, can earn in the high $100s and even low $200s with possibility for production.
A general practice veterinarian that receives an offer for $125,000 and borrowed $300,000 is at a 2.4 debt-to-income ratio. Paying loans might be doable while saving and living, yet we want to focus our attention on the short and long-term plan.
Hypothetically, a veterinarian who graduated at 30 years of age with the intention to work until 65 is projected to earn $4.375 million without production or pay raises. In the present, $300,000 in student loans feels daunting yet this provided the opportunity to make $4 million or greater during their career.
You be the judge on whether this was a good tradeoff. If you practice emergency medicine or become a successful practice owner, the opportunity increases dramatically to $7 million or greater.
For those who graduate with debt to income at 4 or 5 times, there can be the feeling of hopelessness. Fortunately, there are opportunities available that limit payments based on a percentage of income when the loans are borrowed directly from the federal government. Any loans that are borrowed privately from an independent lender such as a bank would require full payments on a specific payment schedule.
Federal loans can work to your advantage because all payments will likely be directly contributed to interest but keep loan payments current to avoid negatively impacting your borrowing potential. Ideally, the goal is to pay the loans in their entirety; however, once loans reach over two times the income, the ability to save and live life can be close to impossible.
Loan repayment programs change depending on who’s in legislation, and usually those programs, once you’re set up, will be grandfathered until forgiveness.
One of the simplest and best strategies to create the most control is to magnify your attention on saving habits. We suggest that people save 20% of their gross income. This is before taxes and deductions.
A quick way to find out your gross income is from the original job offer or a recent paystub. For those who are relief, this would be all the direct deposits made into your account if you’re a 1099 contractor, since these deposits are before any expenses and taxes. The approach for those with a high debt to income ratio is to keep current with loans while saving money because saving now with help us avoid losing time.
If you’re capable of saving 20% and pay student loans back in a timely manner, that is the perfect equation. Yet for those who need time, consistently saving money can help counteract any taxes that would be owed later when the loans are forgiven. The funds that we save should be balanced between short and long-term assets while focusing on taxes now or later, risk of loss, and accessibility when the money is needed.
Some people have found it helpful to create a specific account to handle the future taxes, but by focusing on saving money on a continual and consistent basis, it can alleviate stress and prepare for the future.
Loans can be stressful. For those reading this who are exploring Veterinary medicine as a career or having to decide on loans today, be cautious about how much is borrowed and focus on what is absolutely necessary because there will be a time when they must be repaid.
There are options available for loan repayment. The more money earned will require a higher payment when on an income-based repayment plan, but the amount required will be less than the standard payment to provide the ability to save and manage the current day.
This material is intended for general public use. By providing this content, Park Avenue Securities LLC and your financial representative are not undertaking to provide investment advice or make a recommendation for a specific individual or situation, or to otherwise act in a fiduciary capacity. Guardian, its subsidiaries, agents, and employees do not provide tax, legal, or accounting advice. Consult your tax, legal, or accounting professional regarding your individual situation. Neither Guardian nor its subsidiaries issue umbrella or auto insurance. Tom Seeko, CExP, is a Registered Representative and Financial Advisor of Park Avenue Securities LLC (PAS). Securities products and advisory services offered through PAS, member FINRA, SIPC. Financial Representative of The Guardian Life Insurance Company of America® (Guardian), New York, NY. PAS is a wholly owned subsidiary of Guardian. Florida Veterinary Advisors is not an affiliate or subsidiary of PAS or Guardian. Florida Veterinary Advisors is not registered in any state or with the U.S. Securities and Exchange Commission as a Registered Investment Advisor. The individuals associated with Florida Veterinary Advisors do not maintain specialized licenses or qualifications for the financial services provided to Veterinary professionals CA Insurance License # 0K80141, AR Insurance License #15823672. #8736197.1 Exp. 1/2028