NHSC loan forgiveness worth it financially or not???

[KCOM2015]

Extremely basic financial strategy question... Because $320k in loans freaks me out!!! ...

Is the NHSC student to student loan forgiveness program worth it financially for general internal medicine? Or, would I make more as a hospitalist such that the NHSC would be a poor financial decision?

The program offers up to $120k in forgiveness for 3 years of full-time work at specific, approved practices or hospitals in underserved areas.

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[Shikima]

It's not a good deal any longer due to cuts created by this administration.

 

[smq123]

Moved to the NHSC forum.

 

[smq123]

To clarify a few things:

It is Student to SERVICE, not Student to Student.

As an NHSC scholar, I tell people that the money is only worth it IF this was something that you were going to do anyway. If you were going to work at an outpatient clinic in an underserved area anyway, then go ahead and apply for the scholarship. If, however, you think you might want to be a cardiologist or a endocrinologist or a pulmonologist, don't apply. The lack of freedom to choose is not worth it.

 

[simpler2]

If you are wanting to work in settings/specialty that are those required for NHSC loan repayement, then the money is basically additional funds to you for what you are already going to be doing. If you have limited interest in this sort of work and just hope things will work out for you, then I wouldn't even apply.

 

[milesed]

It was a great deal for me starting in 2001 and finishing 7 years later- still at same employer. It paid off over $100k loans and the federal taxes too. You just have to like the place of work.

 

[styphon]

I am in the NHSC loan forgiveness program as a family med doctor- 50k for 2 year commitment (granted to me this year, no "cuts" involved), which is renewable every 2 years. I work at a site owned by the IHS (indian health services) serving native americans only - and I would do it even without the loan forgiveness. In a case like this - wanting to work in a specific underserved area, then no matter the field, it is a great deal.

Now if you hated underserved/rural areas and want to treat people in a well off area and wanted to do NHSC, I would advise against it. I don't think 50k is worth 2 years of a person being miserable and likely causing other people to be miserable.

 

[deleted390966]

Are you being paid a normal salary (in addition to the amount of loan forgiven) while you're on NHSC service?

 

[smq123]

Are you being paid a normal salary (in addition to the amount of loan forgiven) while you're on NHSC service?

Yes.

 

[styphon]

Your job can not take the NHSC loan forgiveness in account - and if they do, they are trying to rip you off. It is not paid, or supported, in ANY way by your employer, it is all thru the federal government. If they tell you otherwise, do NOT work there as it is a sign of a deceitful employer.

 

[deleted390966]

Does NHSC forgive your undergrad loan as well?

 

[styphon]

I have just started with them, but all the money went to my med school loans (which well exceed the 50k) - I am not sure if this is on purpose, or just a design of "directloans"

 

[smq123]

Does NHSC forgive your undergrad loan as well?

It can be used for any educational loan.

 

[deleted390966]

It can be used for any educational loan.

So how does it work? If you work for the underserved for 4 years, not only NHSC will repay your medical school loans but also undergrad loans??

 

[smq123]

So how does it work? If you work for the underserved for 4 years, not only NHSC will repay your medical school loans but also undergrad loans??

No.

If you participate in the Loan Repayment Program (LRP), you get $30K - $50K for two years of service (depending on the need score of your site). You can apply that money to any educational loan that you have. It doesn't matter if that loan came from medical school or college, it just has to be an educational loan.

 

[Igor4sugry]

No, not worth it. Limits your options, and penalty for breaking contract is very steep.

There are plenty of private sector jobs with loan forgiveness, also the VA now offers $120k over 5 years of service.

 

[styphon]

No, not worth it. Limits your options, and penalty for breaking contract is very steep.

There are plenty of private sector jobs with loan forgiveness, also the VA now offers $120k over 5 years of service.

Except the VA grossly underpays you. I calculated that for my speciality (Family medicine) if I worked at the VA I would need to retire at 65 and live to 85 to break even with a private job w/ a 401k.

If you plan on working in an underserved area (rural, inner city, native american) then the NHSC is great - it is like a bonus you can use for loans.

 

[sabsaf123]

No.

If you participate in the Loan Repayment Program (LRP), you get $30K - $50K for two years of service (depending on the need score of your site). You can apply that money to any educational loan that you have. It doesn't matter if that loan came from medical school or college, it just has to be an educational loan.

Can it be a private loan?

 

[Notsosuperman]

Can it be a private loan?

Yes. I think the stipulations are:
- It is an education only loan and has not been consolidated with any non-qualifying loans (but the loan does not need to be for your professional degree, it can be for undergraduate as well)
- It was disbursed before you get accepted

You'd be best to read the Program Guidance the NHSC puts out for all the nitty-gritty details.

 

[Yadster101]

No.

If you participate in the Loan Repayment Program (LRP), you get $30K - $50K for two years of service (depending on the need score of your site). You can apply that money to any educational loan that you have. It doesn't matter if that loan came from medical school or college, it just has to be an educational loan.

I totally understand your sentiment that one should only do either program (scholarship or LRP) if they really want to work with underserved populations. But my question is, is there even a fincanical incentive at all? I was just on the NHSC job website and I found that FM jobs in my hometown (Chicago) were paying ~$140k. From FM docs I've spoken to it seems like an FM doc (that is reasonably flexibly with location) can reasonably make $180k starting and then get to the 200k mark by their third year. Even if this additional income is taxed at a higher rate that's still like an additional ~30k/yr+. Seems like a wash.

Do you feel like your NHSC job was nearly as well compensated as a typical FM doc or did you find them to be ~20-50k below (like I've seen for Chicago)?


EDIT: also I came across a post of your where I believe you were saying that NY did not have many NHSC jobs but from looking at the website below there are a good amount.

https://datawarehouse.hrsa.gov/tools/analyzers/HpsaFindResults.aspx

 

[smq123]

I totally understand your sentiment that one should only do either program (scholarship or LRP) if they really want to work with underserved populations. But my question is, is there even a fincanical incentive at all? I was just on the NHSC job website and I found that FM jobs in my hometown (Chicago) were paying ~$140k. From FM docs I've spoken to it seems like an FM doc (that is reasonably flexibly with location) can reasonably make $180k starting and then get to the 200k mark by their third year. Even if this additional income is taxed at a higher rate that's still like an additional ~30k/yr+. Seems like a wash.

Do you feel like your NHSC job was nearly as well compensated as a typical FM doc or did you find them to be ~20-50k below (like I've seen for Chicago)?


EDIT: also I came across a post of your where I believe you were saying that NY did not have many NHSC jobs but from looking at the website below there are a good amount.

https://datawarehouse.hrsa.gov/tools/analyzers/HpsaFindResults.aspx

To address your last point first:
1. You're looking at the wrong site. That website merely lists HPSAs in a given area; it does not list if those places are actively looking for jobs. The better website is nhscjobs.hrsa.gov

2. My friend who was looking to stay in New York City could not find a job in her given year. That is not to say that there are never any jobs; the job listings change continually. But what I am saying is that I would not bank on finding a job in a particular metropolitan area.

To address your first point:
Yes. If you want to work with the underserved (and there are a lot of non-monetary benefits to that as well), then yes. It makes financial sense. If you're going to accept a lower salary, then there needs to be some loan repayment (or a scholarship, so that you don't have as many loans) in order to make it financially feasible.

My NHSC job was probably about $20K less than a similar job in private practice in the same area would have been. But having received the scholarship helped a lot.

I like working in a community health center. I think I've seen a lot and have had to grow more than I would have had to in private practice. It has been a good experience. You can't put a financial price on that. But I also understand not wanting to work in a community health center if you have a lot of loans, because it doesn't make sense financially. What I'm saying is is that the scholarship has allowed me to work in a setting that I want to work in, but maybe I would not have worked in, if I had had a lot of loans.

 

[Yadster101]

To address your last point first:
1. You're looking at the wrong site. That website merely lists HPSAs in a given area; it does not list if those places are actively looking for jobs. The better website is nhscjobs.hrsa.gov

2. My friend who was looking to stay in New York City could not find a job in her given year. That is not to say that there are never any jobs; the job listings change continually. But what I am saying is that I would not bank on finding a job in a particular metropolitan area.

To address your first point:
Yes. If you want to work with the underserved (and there are a lot of non-monetary benefits to that as well), then yes. It makes financial sense. If you're going to accept a lower salary, then there needs to be some loan repayment (or a scholarship, so that you don't have as many loans) in order to make it financially feasible.

My NHSC job was probably about $20K less than a similar job in private practice in the same area would have been. But having received the scholarship helped a lot.

I like working in a community health center. I think I've seen a lot and have had to grow more than I would have had to in private practice. It has been a good experience. You can't put a financial price on that. But I also understand not wanting to work in a community health center if you have a lot of loans, because it doesn't make sense financially. What I'm saying is is that the scholarship has allowed me to work in a setting that I want to work in, but maybe I would not have worked in, if I had had a lot of loans.

Thanks. Ya actually I used the site you posted to find the salaries. I actually just broadened the search a little (30 mins outside Chicago instead of directly in Chicago) and the salaries shot up to $160k+. I also just searched for jobs in NY and there seem to be a few FM postings. So lets say there are approximately ~15 job postings on nhscjobs.hrsa.gov right now for an FM doc near Chicago. Since NHSC doesn't force you to work in a certain location, wouldn't the chance of working in the Chicago-land area be pretty high if one were to apply to all 15 jobs that meet the HRSA score requirement?

 

[smq123]

Thanks. Ya actually I used the site you posted to find the salaries. I actually just broadened the search a little (30 mins outside Chicago instead of directly in Chicago) and the salaries shot up to $160k+. I also just searched for jobs in NY and there seem to be a few FM postings. So lets say there are approximately ~15 job postings on nhscjobs.hrsa.gov right now for an FM doc near Chicago. Since NHSC doesn't force you to work in a certain location, wouldn't the chance of working in the Chicago-land area be pretty high if one were to apply to all 15 jobs that meet the HRSA score requirement?

Not necessarily.

I applied for 3 jobs in the Chicago area. Not a single one got back to me, although all 3 were listed on the NHSC job site. This was a number of years ago, but still - just because a job is listed does not mean that the opportunity is real, that they will get back to you, that you will want the job, etc.

 

[Yadster101]

Not necessarily.

I applied for 3 jobs in the Chicago area. Not a single one got back to me, although all 3 were listed on the NHSC job site. This was a number of years ago, but still - just because a job is listed does not mean that the opportunity is real, that they will get back to you, that you will want the job, etc.

Do you know what type of locations most people end up in? Do 90% of people go rural? Or could I reasonably get a job within 1-2 hrs of a mid-west metro like Chicago, Milwaukee, Detroit, etc. ?

 

[smq123]

Do you know what type of locations most people end up in? Do 90% of people go rural? Or could I reasonably get a job within 1-2 hrs of a mid-west metro like Chicago, Milwaukee, Detroit, etc. ?

That's a good question. I don't think that there's any data out there. I highly doubt that 90% of people go rural, and I would imagine that you could reasonably expect to get a job in the area that you mentioned. But I don't think that anyone can say for sure.