Loan Forgiveness Question

[McKnightRider]

So as I understand the PSLF program...you work for a non-profit non-taxed organization for 10 years making monthly payments (which includes IBR)...and your loan is completely forgiven after that...but questions

1.) Can you do this as a resident? For example as a resident my employer is BLAH-BLAH Medical Center and non-taxed/non-profit...do years as a resident making payments count?

2.) What if your job at a qualifying employer were only part time? For example, let's say that after residency you came back and became faculty 2 days a week...while maintaining a private practice position. I realize that your IBR monthly payment would go way up...but would years spent as part time go towards the 10 required for forgiveness?

Thanks

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[GTFOOMICT]

So as I understand the PSLF program...you work for a non-profit non-taxed organization for 10 years making monthly payments (which includes IBR)...and your loan is completely forgiven after that...but questions

1.) Can you do this as a resident? For example as a resident my employer is BLAH-BLAH Medical Center and non-taxed/non-profit...do years as a resident making payments count?

2.) What if your job at a qualifying employer were only part time? For example, let's say that after residency you came back and became faculty 2 days a week...while maintaining a private practice position. I realize that your IBR monthly payment would go way up...but would years spent as part time go towards the 10 required for forgiveness?

Thanks

1) Medical residents I know are already in IBR as residents and making progress on their 10 year commitment.

2) Must be at least 30hrs per week at a not for profit. That's what I'm reading in the official rules. The rules document is short so delve in!

I still hate IBR. The general tax payer shouldn't pay off your loans. I do realize it will provide relief for many within our profession and that will indirectly help me. I also am happy that should I become disabled, my loans will only take 10% of my AGI.

 

[hellopeople]

So as I understand the PSLF program...you work for a non-profit non-taxed organization for 10 years making monthly payments (which includes IBR)...and your loan is completely forgiven after that...but questions

1.) Can you do this as a resident? For example as a resident my employer is BLAH-BLAH Medical Center and non-taxed/non-profit...do years as a resident making payments count?

2.) What if your job at a qualifying employer were only part time? For example, let's say that after residency you came back and became faculty 2 days a week...while maintaining a private practice position. I realize that your IBR monthly payment would go way up...but would years spent as part time go towards the 10 required for forgiveness?

Thanks

I would hope not. I would hate to think we would be paying you for nothing.

The first couple threads I saw about this didn't bother me, but it seems like a lot of people are looking for a free ride...

 

[fujindesu]

So as I understand the PSLF program...you work for a non-profit non-taxed organization for 10 years making monthly payments (which includes IBR)...and your loan is completely forgiven after that...but questions

1.) Can you do this as a resident? For example as a resident my employer is BLAH-BLAH Medical Center and non-taxed/non-profit...do years as a resident making payments count?


2.) What if your job at a qualifying employer were only part time? For example, let's say that after residency you came back and became faculty 2 days a week...while maintaining a private practice position. I realize that your IBR monthly payment would go way up...but would years spent as part time go towards the 10 required for forgiveness?

Thanks

1.yes
2. you need to work 30 hrs/week at a non profit.

 

[Tirekicker]

1) Medical residents I know are already in IBR as residents and making progress on their 10 year commitment.

2) Must be at least 30hrs per week at a not for profit. That's what I'm reading in the official rules. The rules document is short so delve in!

I still hate IBR. The general tax payer shouldn't pay off your loans. I do realize it will provide relief for many within our profession and that will indirectly help me. I also am happy that should I become disabled, my loans will only take 10% of my AGI.

Bingo!

 

[fujindesu]

Bingo!

tax payer pays for HPSP as well.

 

[cmcner]

tax payer pays for HPSP as well.

Bingo!

 

[Tirekicker]

tax payer pays for HPSP as well.

HPSP is an incentive program to help recruit enough dentists to support our military's needs. I have no problem with PSLF. This is also an incentive program that fills a critical shortfall. However, IBR is just a handout. I don't get how people can go to some crazy-expensive private school and rack up $400,000+ in student loans, set up a practice making peanuts in a place that is already saturated with dentists, pay the minimum amount for 25 years and then expect the tax payers to foot the balance. Can you imagine if you maxed out your credit card and then made minimum payments for the next 25 years and then expected your neighbors to pay it off. That's ludicrous! How do you people sleep at night?!?

 

[hellopeople]

tax payer pays for HPSP as well.

If I'm not mistaken, and I suppose I could be, they do this in order to reduce recruiting costs. I can't imagine the bonus you would need to give to a dentist, who has been making a civilian income for awhile, in order to convince him to let you send him over to our latest war zone. I doubt the tax payer loses out on the HPSP.

 

[fujindesu]

If I'm not mistaken, and I suppose I could be, they do this in order to reduce recruiting costs. I can't imagine the bonus you would need to give to a dentist, who has been making a civilian income for awhile, in order to convince him to let you send him over to our latest war zone. I doubt the tax payer loses out on the HPSP.

Yeah, of course. There is an incentive for IBR as well thou, principal and interest are taxable at the 20th year (~30%), plus the minimum payment you been making for 20 years, I say the government roughly waive 50%-60% of your total loan. For that, a young dentist can have enough cash flow to start his own practice, 15 years earlier than if there is no IBR. that translates to a couple of new job opportunities for the American people, more discretionary income for the dentist and his staff to spend, GDP goes ++++. Money well spent IMO. IBR was supported by Bush and Obama, I think they know what's better for the country than we do.


Of course I think HPSP is the better deal, it's better to owe the military 4 years, than the bank 20 years. Life style in medical group is as good as it gets.

 

[fujindesu]

HPSP is an incentive program to help recruit enough dentists to support our military's needs. I have no problem with PSLF. This is also an incentive program that fills a critical shortfall. However, IBR is just a handout. I don't get how people can go to some crazy-expensive private school and rack up $400,000+ in student loans, set up a practice making peanuts in a place that is already saturated with dentists, pay the minimum amount for 25 years and then expect the tax payers to foot the balance. Can you imagine if you maxed out your credit card and then made minimum payments for the next 25 years and then expected your neighbors to pay it off. That's ludicrous! How do you people sleep at night?!?

lol what? people sleep well at night because they know IBR is legal, and it is helping them realize their dentist dream. If I know the guy that maxed out his credit card, used the money for a start up, and created jobs for the neighbors, I have no problem if some of the neighbors tax money goes to help him with the start up. you come off sounding like an envious step child. Social security, illegal immigration are what's really costing uncle sam. every missile lunched in a foreign war costs 4 years of dental school tuition, yet I trust the government enough to know that in the long run, it is in our country's best interest.

 

[TuckerT21]

lol what? people sleep well at night because they know IBR is legal, and it is helping them realize their dentist dream. If I know the guy that maxed out his credit card, used the money for a start up, and created jobs for the neighbors, I have no problem if some of the neighbors tax money goes to help him with the start up. you come off sounding like an envious step child. Social security, illegal immigration are what's really costing uncle sam. every missile lunched in a foreign war costs 4 years of dental school tuition, yet I trust the government enough to know that in the long run, it is in our country's best interest.

Just call a spade a spade, and admit that there is a loop hole in the system. To think it is OK to spend a bunch of money you don't have (Credit card or loans) on an idea (company, becoming a dentist) and then whether it works out or not have other people pay for it is simply delusional.

 

[Tirekicker]

Yeah, of course. There is an incentive for IBR as well thou, principal and interest are taxable at the 20th year (~30%), plus the minimum payment you been making for 20 years, I say the government roughly waive 50%-60% of your total loan. For that, a young dentist can have enough cash flow to start his own practice, 15 years earlier than if there is no IBR. that translates to a couple of new job opportunities for the American people, more discretionary income for the dentist and his staff to spend, GDP goes ++++. Money well spent IMO. IBR was supported by Bush and Obama, I think they know what's better for the country than we do.

"There is no such thing as a free lunch."

The government doesn't have a magic wand that they wave that makes hundreds of thousands of dollars miraculously appear to pay off half your school debt (as well as the debts of thousands of other mooches). Someone has to pay for it. It's comforting to know that people feel comfortable dumping off their debts on the rest of us.

lol what? people sleep well at night because they know IBR is legal, and it is helping them realize their dentist dream. If I know the guy that maxed out his credit card, used the money for a start up, and created jobs for the neighbors, I have no problem if some of the neighbors tax money goes to help him with the start up. you come off sounding like an envious step child. Social security, illegal immigration are what's really costing uncle sam. every missile lunched in a foreign war costs 4 years of dental school tuition, yet I trust the government enough to know that in the long run, it is in our country's best interest.

If your feeling so generous, that's admirable. We need more people like that. I have no problem if individuals choose to help others, but the problem is when someone somehow feel entitled to other people's money. That's not how we do things in this country. You are responsible for your financial choices, and no one else. It's that simple.

 

[thewingman]

 

[cmcner]

"There is no such thing as a free lunch."

The government doesn't have a magic wand that they wave that makes hundreds of thousands of dollars miraculously appear to pay off half your school debt (as well as the debts of thousands of other mooches). Someone has to pay for it. It's comforting to know that people feel comfortable dumping off their debts on the rest of us.



If your feeling so generous, that's admirable. We need more people like that. I have no problem if individuals choose to help others, but the problem is when someone somehow feel entitled to other people's money. That's not how we do things in this country. You are responsible for your financial choices, and no one else. It's that simple.

You're lost on this one my friend. The only thing that is happening is that they are not making a profit on your loans. You're going to pay back every cent of your principle with standard IBR with a combination of your standard payments and the income tax you have to pay on the forgiven portion even if you only average 120K for the first 20 years of your career which is pretty piss poor.

In 99% of dental cases the worst situation is that it's an interest free loan.

 

[marykabrown]

yes tax payer pays for HPSP as well.

 

[TuckerT21]

You're lost on this one my friend. The only thing that is happening is that they are not making a profit on your loans. You're going to pay back every cent of your principle with standard IBR with a combination of your standard payments and the income tax you have to pay on the forgiven portion even if you only average 120K for the first 20 years of your career which is pretty piss poor.

In 99% of dental cases the worst situation is that it's an interest free loan.

No, I don't think YOU get it. WHO pays that interest that you are FREE from paying? OTHER TAX PAYERS

 

[cmcner]

No, I don't think YOU get it. WHO pays that interest that you are FREE from paying? OTHER TAX PAYERS

Oh I get it, the tax payers aren't paying anything back in the above situation since the government is the primary lender and therefore isn't paying any banks off for the forgiven interest. The interest is a profit margin for the federal government, it just isn't realized if you get loan forgiveness, that doesn't result in any lost investment(aka no tax payer dollars), only lost profit and acts like a 0+% interest loan. The only possible loss is inflation which will likely be covered anyway by your payments.

 

[Cello]

Many people seem to forget that the general health of the population is in the government's best interest, and one of its responsibilities. Why go so far as to protect your citizens from foreign threats if you're not willing to invest in domestic threats as well? Anyway, a program which creates professionals who earn more money and thus generate more tax revenue in their lifetime for the federal government is probably a very good investment of public money, especially when considering just how prohibitively expensive professional schools are becoming in the United States.

That said, public benefits are not entitlements, and should not be treated as such.

 

[Tirekicker]

that said, public benefits are not entitlements, and should not be treated as such.

+1