Anyone enrolled in the Public Service Loan Forgiveness Program

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I was told about this repayment program by a current resident, who says he is basically paying the minimal amount in his monthly loan payments and, after 120 months or 10 years of repayment, his loans will be forgiven. Is it really that simple? I know there are requirements for your current employment being a non-profit or 501(c)3 charitable organization, but most academic medical centers that offer residency and fellowship programs meet that requirement.

It's that simple. The gov is flush with cash and they have carefully thought out the budget ramifications of forgiving these loans so it will surely be no problem. It's such a simple process, no contract, no messy paperwork...you just trust that the program is going to pay off in 10 years. As this is such an incredible deal I've actually put together an investment plan for medical students based on this program. You borrow as much money as you can, more than you need for your education and with that extra money I'll sell you fractional ownership of a bridge. Think about it! The money is free anyway (gov just going to forgive it in 10 years) might as well use it. And bridges are a real necessity, private bridges can amass huge profits in tolls. Pluss, building bridges is a shovel ready job, think of the economy, what about the children?

Make checks payable to DYNX thanks

As you can tell there is a lot of sketicism if this program will cont in 10years. The hope is that if something changed you would be grandfathered in if you were already in the program. First you have to apply and be accepted for IBR. After this, you can apply for the PSLF program and they will let you konw if your employer qualifies. One thing is that for a person who is single or even married without kids, under IBR with a resident salary you are looking at $300-400/mo which isn't as cheap as your post thought. There are a bunch of IBR calculators online where you can try your income. I have asked direct loans (the servicer) many times if they see this standing time and they always say yes. Who knows...I personally am in the program with the knowledge that one day it may kick me out; who knows. It would literally take an act of congress so we'll see. One other way to look at it is that even if it does fold in the end, you will be that much more ahead of the people who are putting their loans into forebearance right now and accruing MORE and MORE interest. Let me know if I can help with anymore questions...

I was told by my lender Great lakes my resisdenyc does not count towards 10 years in Public sector work. They do not count residency as work. This makes the public sector loan forgiveness not so good.

Originally Posted by baddog125

I was told by my lender Great lakes my resisdenyc does not count towards 10 years in Public sector work. They do not count residency as work. This makes the public sector loan forgiveness not so good.

I suggest you may want to do more work to understand what "public service" means. PSLF has rules; you have to understand them, and you have to follow them.

So aside from applying to do income-based repayment (which I presume I can't do until I start residency), is there any other paperwork that I need to fill out to participate in the Public Service Loan Forgiveness Program? I want to make sure I'm "on record" in case the program doesn't survive as anticipated and I have the opportunity to be grandfathered in.

Originally Posted by SB100

So aside from applying to do income-based repayment (which I presume I can't do until I start residency), is there any other paperwork that I need to fill out to participate in the Public Service Loan Forgiveness Program? I want to make sure I'm "on record" in case the program doesn't survive as anticipated and I have the opportunity to be grandfathered in.

You aren't in the program. You apply after making 120 qualifying payments.

1. Google PSLF.
2. Go to the studentloans.gov link that is the #1 result
3. Look for "how can I keep track of my eligibility?" and go to that section
4. Do the stuff it says in that section. Hint: it's much more than nothing.

Best of luck to you.

Residency does count towards PSLF if you work at a public hospital/program at least. I have been enrolled in PSLF in residency for 1.5 years at this point.

Also, I think you have to pay a pre-determined maximum amount according to your salary. Given a physicians salary, this may may end up being a larger monthly payment than under a regular plan. ( You could instead spread it out in 15 years and perhaps save more of an emergency fund or put money away to retirement to accrue interest)

Still may be worth it.

Originally Posted by SaintJude

Also, I think you have to pay a pre-determined maximum amount according to your salary. Given a physicians salary, this may may end up being a larger monthly payment than under a regular plan. ( You could instead spread it out in 15 years and perhaps save more of an emergency fund or put money away to retirement to accrue interest)

Still may be worth it.

It's a pre-determined minimum, not maximum. You are never required to pay more than the minimum of your payment plan and the 10 year standard plan.