Ready. Set. Go! Tackle Educational Debt

 A Step-By-Step Playbook for VMAs:

How to Take Action on the Educational Debt Crisis

It’s time to tackle educational debt in the veterinary profession – and you’re part of the solution!

The veterinary educational debt crisis is a complex and far-reaching problem, which impacts the entire veterinary profession:

  • The current average debt to income ratio is approximately 2:1 with the average debt load at about $160,000.
  • The number of new graduates and early career veterinarians impacted by this crisis continues to grow each year.
  • Educational debt is a significant stressor both emotionally and financially on a growing cohort of veterinarians. Several studies have shown the detrimental impact of educational debt and Merck’s 2018 Animal Health Veterinary Wellbeing Study indicates that veterinary student debt is related to psychological distress within the profession.

A complex problem like educational debt requires solutions from all areas of the profession, including veterinary organizations that serve as conduits to relay debt-related information to members and act as innovative problem-solvers. This is a duty that must be embraced for veterinary students, veterinarians and the overall future of the profession.

VMAE compiled the following resources to assist veterinary organizations with developing and incorporating educational debt strategies into their overall strategic framework. There are educational and advocacy resources listed below as well that we hope you will use. If your association has resources you would like to share, please email the item to admin@vmae.org.

Make It Strategic!

Have the conversation, now. Convene discussion amongst your Board of Directors to probe the multi-faceted issue of educational debt and incorporate educational debt into your VMA’s strategic framework. These tools can help your elected leaders deepen their understanding of the issue and develop action steps:

  • Slide deck providing a summary of how the Veterinary Debt Initiative is confronting the crisis.
  • Recording of the Veterinary Debt Initiative session presented at the AVMA Veterinary Leadership Conference 2020.  Titled “Beyond Dollars and Cents: Leadership in Student Debt Strategies” the session included an overview of educational debt by AVMA’s Dr. Bridgette Bain, an update on the initiative by AAVMC’s Dr. Caroline Cantner, and ideas for ways that associations can provide support by VMAE’s Candace Joy, Jack Advent and Ralph Johnson.
  • Slide deck portraying the current situation and ideas for what students, schools, practice owners and individuals can do to address educational debt.  These slides are also included in the recording of the Veterinary Debt Initiative session described above.
  • Peer to Peer News special editions on educational debt provide information on many facets of the issue.

Questions for your board to discuss may include:

  • What is our VMA’s role in tackling the educational debt crisis?
  • If we don’t act, who will?
  • Where does educational debt best fit in our strategic framework?
  • How can we most effectively help turn awareness of the problem into concrete actions?
  • How might we engage VMA volunteers in our educational debt action plan?
  • How many resources should our VMA allocate to this crisis?

You have to ask to know. Invite discussion with veterinary students and recent graduates to understand their perceptions and pain points related to educational debt. Get up-to-speed with these articles:

  • Malinda Larkin ofJAVMA News summarized the comprehensive results from the AVMA survey of the 2019 graduating class presented by Dr. Bridgette Bain, AVMA Associate Director of Analytics.
  • In “So You Make $100,000? It Still Might Not Be Enough to Buy a Home,” * The Wall Street Journal recently looked at the increase in the number of six-figure-income families who rent instead of buy a home: “Student debt and meager savings cloud their financial future. “ *requires WSJ subscription to access article
  • The Facebook group, Not One More Vet, gives “veterinarians support and a sounding board for the stresses of their work.” Student debt is one of the stresses. At 18,000 members and counting, some of your members are in it.
  • In “Biggest College Regrets,”com wrote, “These bleak statistics on the student debt crisis, and the lasting effects such a crisis will have on younger generations, has created a conversation about the true worth of higher education.”

Make a commitment. Commit to an objective around educational debt that can be reflected in your VMA’s strategic framework. Here’s an example:

  • Actively engage and support our members in addressing educational debt.

Take action. Review the menu of opportunities (below) and incorporate some of these tactics into your action plan to support your strategic objective. You don’t have to do them all – just pick a few!

Track your progress and refine your plan. Measure your progress and adjust your tactics if necessary. Make sure your hard work is moving the needle!

Educational Opportunities

Spread the word. Share news about learnings, accomplishments, success stories and novel ideas about the educational debt crisis by publishing VDI materials (distributed through special editions of VMAE Peer to Peer News) in your print and digital communications channels.

Create an educational debt resource center. Add an educational debt section to your VMA website to leverage availability of resources from VMAE, AVMA, AAVMC, VIN Foundation, and others:

Please feel free to utilize language from VMAE’s website as introductory copy in your educational debt resource center.

Publicize webinars (both live and archived) on topics of educational debt and financial health from AVMA, VIN, and ASAE and add links to the webinars into your educational debt resource center.

Promote attendance at VDI presentations at the AVMA Veterinary Leadership Conference, AVMA Economic Summit, Veterinary Wellbeing Summit, AAVMC Annual Conference, AVMA Convention, and major professional gatherings.

Engage practice owners. Undertake discussion with your members to discover what they’re implementing at the practice level to help address educational debt. For example, do they offer a loan repayment program? Have they increased salaries to offset their associates’ educational debt? Celebrate their success stories in your publications and share it with VMAE at admin@vmae.org. Get inspired and check out these innovative repayment programs:

Funding Opportunities

Create (or expand) a VMA scholarship fund to assist veterinary students from your state.

Create (or expand) an endowed scholarship fund in your VMA’s name at a college of veterinary medicine.

Support a college of veterinary medicine in its efforts to raise money for student scholarships.

Establish and fund a state veterinary medicine loan repayment program.

  • Jack Advent, Executive Director of the Ohio VMA:
    • “Ohio’s program was put in place about 12 years ago and at that time it was designed to try an encourage some vets to go into underserved areas specifically in the food animal or public health sector. When a vet pays their licensing fee, $10 of each fee and goes into the fund. So it’s a self-supported, self-funded fund. The Licensing Board makes the award determination. Veterinarians pay their licensing fees every two years, so every two years there’s about $40-$45,000 available. The Licensing Board awards $7-10,000 per year to a few vets. Any veterinarian can apply for the award.”
  • AVMA has compiled a summary of state laws addressing veterinary loan programs, which can provide ideas and language for structuring a program in your state.

Work with your state veterinarian to define shortage areas that can be submitted for the federal veterinary medicine loan repayment program.

Financial Counseling Opportunities

Stop and Read This!

There has been a surge of companies and individuals entering the student loan advising and refinancing space. This increased interest in student loan refinancing products leaves veterinary students and veterinarians potentially vulnerable to advice that is not specific to their high debt-to-income ratio or in their best interest. The lack of clear standards or mandatory fiduciary regulations also contributes to veterinarians’ and veterinary students’ vulnerability. Currently, there is no way for your members or students to decide on a reputable or industry-specific financial advisor for their student loans. Therefore, before you recommend a financial partner, sponsor a financial speaker, or provide financial counseling to your members, make sure they meet the following requirements:

  • Adhere to fiduciary standards. According to SmartAsset.com a fiduciary financial advisor must:
    • Put their clients’ best interests before their own, seeking the best prices and terms.
    • Act in good faith and provide all relevant facts to clients.
    • Avoid conflicts of interest and disclose any potential conflicts of interest to clients.
    • Do their best to ensure the advice they provide is accurate and thorough.
    • Avoid using a client’s assets to benefit themselves, such as by purchasing securities for their own account before buying them for a client.
    • Click here to learn why it’s important to choose a fiduciary financial advisor.
  • Have extensive experience advising individuals in professions with high debt-to-income ratios.
  • Have extensive knowledge of the Federal direct loan consolidation program and income-based repayment options.
  • Offer fee-based services per individual (not commission-based work).
  • Exercise caution when offering refinancing options and/or partnering with companies that offer refinancing options. For information on refinancing student loans with private lenders, click here and watch Module 7.

Once you’ve identified a trusted financial partner, take action:

  • Support a college of veterinary medicine in providing a financial counselor that students can access. Counseling from financial experts who have extensive experience in advising high debt-to-income ratio professions appears to be one of the most impactful ways for supporting those individuals with student debt burdens.
  • Invite a financial partner to discuss hot topics in your Power of 10 program.
  • Make financial counseling available for recent graduates.
    • Candace Joy, Executive Director of Washington VMA:
      “About 10 years ago we started to offer two hours of complimentary financial counseling by a financial expert for new graduates. Eight years ago we also put together a financial resources guide that is available on our website which includes topics such as budgeting, starting good habits, savings, debt management, student loans, disability insurance, long term care, families and finances which covers buying a house, practice ownership, and paying down debt.”
    • Deloris Green Gaines, Executive Director of the Tennessee VMA:
      “Student debt is now part of our strategic plan. We have a partnership with a financial consulting company, and they will provide services at a discounted rate to our members. They will also provide information that we can provide to our members.”
Advocacy Opportunities
  • Become proficient in understanding federal student loan forgiveness programs such as the Public Service Loan Forgiveness Program.
  • Educate your state legislators on the dimensions and impacts of educational debt. Contact the AVMA Government Relations Division (AVMAGRD@avma.org) for messaging ideas.
  • Raise awareness about the role and importance of veterinarians beyond companion animal medicine, such as public health, antimicrobial resistance, and food safety. Your legislators will appreciate knowing that supporting funding for veterinary education serves the overall public good not just pet owners.
  • Support both state and federal efforts for the return of public funding to public institutions of higher education. Click here for details on AAVMC’s Advocacy work.
  • Publicize action requests from AVMA and AAVMC when grassroots contacts are helpful to influence federal policy or legislation pertinent to educational debt. Click here for details on AVMA’s Congressional Advocacy Network.
  • Encourage your members to be involved in your VMA advocacy efforts and to explore the ways to get involved in AVMA advocacy.