Funds raised will be passed through to the four institutions equally to eliminate or help pay off student debt. It is the intention of the Fund to perpetuate tuition and debt-free medical education at the four HBMSs. The institutions will administer the funds, which will be used for medical tuition, fees, and living expenses.
Student recipients will invest in future generations of medical doctors by entering into a legal contract with the Fund to donate 1% of their gross income to the Fund beginning five years after their graduation from medical school and continuing for their entire careers as medical professionals regardless of age. Because the Fund is a non-profit, each student’s 1% contribution will be considered a charitable donation and, therefore, deductible under current IRS regulations. The vision is to create a self-perpetuating fund that eventually grows large enough to be self-sufficient, although substantial investment from philanthropic individuals, family offices, and institutions will be needed in the early years. Breaking the cycle of underinvestment in black students will change entire communities and our nation. Donations from graduates will be contractual and enforced, even if a student chooses to change their career in the future.
Currently, the average physician pays $365,000 to $440,000 for their education. Interest costs add $165,000 to $240,000. A $200,000 debt can double in 10 years at current interest rates, even with regular payments. Many physicians are still paying their medical student loans 20 to 25 years after graduation.
The Fund assumes the average physician will enjoy a thirty-year career earning $275,000 annually in current dollar terms. Graduate lifetime contributions to the Fund will be approximately $68,750 for investment in the education of future generations of medical doctors, fulfilling the vision and mission of the Fund to break the cycle and burden of debt for these important professionals.