But this scenario doesn't apply to the vast, vast majority of folks in the med school situation. These newly minted doctors will make low wages in residency, bu

But this scenario doesn't apply to the vast, vast majority of folks in the med school situation. These newly minted doctors will make low wages in residency, but they are still great credit risks because they can be expected to make much higher salary in the future withOUT the need to acquire additional debt. The problem with these "insolvency" calculations is that by going into debt for education you are trading cash for future earning potential. If you valued that future earning potential like an annuity, it many cases it would be worth millions of dollars, but straight net worth calculations value it at 0. Of course, the problem with student debt is that a lot of folks are making really bad investments on that "annuity" - trading large sums of cash for a minimal if any increase in future earning potential. Despite all the upheaval in medicine, however, almost all doctors can expect to make much, much more income after they finish residency.