The department of Employment has announced a 50% bonus on loan forgiveness for medical students willing to serve in rural areas of the country. .This initiative, which will cost $3.2 million annually, addresses the shortage of doctors and nurses in rural areas, according to Blacklock’s Reporter..“Among the many factors that contribute to the limited access to healthcare services in rural and remote areas is the challenge of attracting family physicians, nurses and nurse practitioners to these communities,” the department wrote in a Regulatory Impact Analysis Statement. Bonuses would take effect in “late fall 2023,” it said. No date was set..According to the Canada Student Loans Act regulations from 2013, medical students who commit to residing and practicing in communities with populations below 50,000 are eligible for loan waivers amounting to $40,000 for doctors and $20,000 for nurses over five years. However, due to inflation, the department has proposed a 50% increase in the waivers, raising them to $60,000 for doctors and $30,000 for nurses..“While the Canada Student Loan forgiveness benefit was put in place to help incentivize family physicians, nurses and nurse practitioners to work in rural and remote communities, the benefit is continuing to decline in value given inflation and the cost of living,” wrote staff. .“The benefit has not increased in value since its implementation in 2013.”.“The maximum annual loan forgiven would increase gradually based on the number of years a family physician, nurse or nurse practitioner works in an under-served rural or remote community,” wrote staff. .“The loan forgiveness would reduce the outstanding Canada Student Loan balance for eligible beneficiaries at the end of each year of work.”.According to a 2022 University of Alberta report MD Financial Education Session, the department aims to recruit 3,000 to 8,000 medical graduates annually to rural areas over the next 10 years. The cost of a four-year medical degree is estimated to be around $160,000, which includes $83,000 in tuition and fees..The Impact Analysis Statement said that as inadequate as services may be in cities, “shortages are often most acute in rural and remote communities” nationwide. .“Increasing the generosity of Canada Student Loan forgiveness could result in some federal loans being forgiven faster for some borrowers and is expected to help improve the retention of healthcare providers in under-served rural and remote communities,” said the statement..According to the Canadian Institute for Health Information, there are 94,000 doctors in the country. The majority, 92%, are located in urban areas. A report by the Institute in 2005 Geographic Distribution of Physicians in Canada revealed that only a small percentage, 2%, of specialists practiced in small towns.
The department of Employment has announced a 50% bonus on loan forgiveness for medical students willing to serve in rural areas of the country. .This initiative, which will cost $3.2 million annually, addresses the shortage of doctors and nurses in rural areas, according to Blacklock’s Reporter..“Among the many factors that contribute to the limited access to healthcare services in rural and remote areas is the challenge of attracting family physicians, nurses and nurse practitioners to these communities,” the department wrote in a Regulatory Impact Analysis Statement. Bonuses would take effect in “late fall 2023,” it said. No date was set..According to the Canada Student Loans Act regulations from 2013, medical students who commit to residing and practicing in communities with populations below 50,000 are eligible for loan waivers amounting to $40,000 for doctors and $20,000 for nurses over five years. However, due to inflation, the department has proposed a 50% increase in the waivers, raising them to $60,000 for doctors and $30,000 for nurses..“While the Canada Student Loan forgiveness benefit was put in place to help incentivize family physicians, nurses and nurse practitioners to work in rural and remote communities, the benefit is continuing to decline in value given inflation and the cost of living,” wrote staff. .“The benefit has not increased in value since its implementation in 2013.”.“The maximum annual loan forgiven would increase gradually based on the number of years a family physician, nurse or nurse practitioner works in an under-served rural or remote community,” wrote staff. .“The loan forgiveness would reduce the outstanding Canada Student Loan balance for eligible beneficiaries at the end of each year of work.”.According to a 2022 University of Alberta report MD Financial Education Session, the department aims to recruit 3,000 to 8,000 medical graduates annually to rural areas over the next 10 years. The cost of a four-year medical degree is estimated to be around $160,000, which includes $83,000 in tuition and fees..The Impact Analysis Statement said that as inadequate as services may be in cities, “shortages are often most acute in rural and remote communities” nationwide. .“Increasing the generosity of Canada Student Loan forgiveness could result in some federal loans being forgiven faster for some borrowers and is expected to help improve the retention of healthcare providers in under-served rural and remote communities,” said the statement..According to the Canadian Institute for Health Information, there are 94,000 doctors in the country. The majority, 92%, are located in urban areas. A report by the Institute in 2005 Geographic Distribution of Physicians in Canada revealed that only a small percentage, 2%, of specialists practiced in small towns.
