Public Service Loan Forgiveness Questions..

[flyingpanda87]

Just a few questions and thoughts I had about Public Service Loan Forgiveness...

For the Public Service Loan Forgiveness, does working at any hospital that has an Emergency Room count? Even if it's nonprofit? Based on how I'm reading the ECF form for it, it would seem to indicate so! Thoughts?

Source: https://studentaid.ed.gov/sites/default/files/public-service-employment-certification-form.pdf


Secondly, has anyone thought about how states with laws preventing hospitals from hiring physicians directly would effect trying to do PSLF in that state? If you can't work for the eligible nonprofit due to such rules, how would this play out? Who would actually be the employer that would qualify in such a case? I'm a little lost on this one, any help?
(States with such laws include California and Texas http://www.amednews.com/article/20090803/profession/308039984/2/)

Finally, has anyone found a good online calculator that shows monthly payment amounts through residency and the jump in income after residency for Income Based and Pay as You Earn plans?

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[Igor4sugry]

1. Hospital needs to have non-profit designation; you need to contact hospital specifically to find out. (not all of them are)

2. If the state law does not allow you to fit into PSLF category then go to another state.

3. IBR calculator
Use income as resident to get #s and then income as attending to get estimates

http://www.ibrinfo.org/calculator.php

 

[sazerac]

1. Hospital needs to have non-profit designation; you need to contact hospital specifically to find out. (not all of them are)

2. If the state law does not allow you to fit into PSLF category then go to another state.

3. IBR calculator
Use income as resident to get #s and then income as attending to get estimates

http://www.ibrinfo.org/calculator.php

Concerning (1), isn't the non profit hospital clause covered two bullet points earlier in the list? The list says "must be non profit *OR* a private entity that provides emergency management services".

Can you give an example of a hospital that is private, has an emergency room, and doesn't provide emergency management services?

I think the OP is onto something here.

 

[dpmd]

Concerning (1), isn't the non profit hospital clause covered two bullet points earlier in the list? The list says "must be non profit *OR* a private entity that provides emergency management services".

Can you give an example of a hospital that is private, has an emergency room, and doesn't provide emergency management services?

I think the OP is onto something here.

Incorrect. The phrasing is "A private non-profit employer that is not a tax-exempt organization under Section 501(c)(3) of the IRC may be a qualifying public service organization if it provides certain specified public services". So they still need to be nonprofit.

If you aren't employed by the hospital and you aren't working on your own you are likely emplyed by a physician's group that is most likely actively seeking profit and you would therefore not quality for PSLF with that employment (although your pay might be higher and you could then theoretically actually pay off your loans)

 

[SKPharmD]

So, as a pharmacist employed by any non-profit hospital provides emergency management, I can have my loans forgiven after 10 years?

 

[dpmd]

So, as a pharmacist employed by any non-profit hospital provides emergency management, I can have my loans forgiven after 10 years?

Anybody employed by any nonprofit 501(c)(3) who makes 10 years of on time payments under income contingent or income based repayment on DIRECT LOANS or DIRECT CONSOLIDATION LOANS (not those serviced by anybody else) can in theory have the remainder of their loans forgiven after those 10 yrs are up (assuming the program isn't changed by then, or that the program isn't ended by then). The issue that anybody making good money will run into is that very little will be left to forgive (unless they have a really high loan amount) since your payments may be high enough to match the standard repayment (which is meant to pay the loans off in 10 yrs).

 

[SKPharmD]

Anybody employed by any nonprofit 501(c)(3) who makes 10 years of on time payments under income contingent or income based repayment on DIRECT LOANS or DIRECT CONSOLIDATION LOANS (not those serviced by anybody else) can in theory have the remainder of their loans forgiven after those 10 yrs are up (assuming the program isn't changed by then, or that the program isn't ended by then). The issue that anybody making good money will run into is that very little will be left to forgive (unless they have a really high loan amount) since your payments may be high enough to match the standard repayment (which is meant to pay the loans off in 10 yrs).

Thanks for the response, sounds like it may benefit me ($170k in student loan debt). I have 14 direct loans (~$140k and 2 FFEL loans (~$30k). I think I can consolidate them into one Direct Consolidation Loan. Anyone have any experience doing that?

If the PAYE plan is extended to all pre-10/2007 borrowers, like the president wants to do, this can really benefit a lot of us.

 

[tmvguy03]

Anybody employed by any nonprofit 501(c)(3) who makes 10 years of on time payments under income contingent or income based repayment on DIRECT LOANS or DIRECT CONSOLIDATION LOANS (not those serviced by anybody else) can in theory have the remainder of their loans forgiven after those 10 yrs are up (assuming the program isn't changed by then, or that the program isn't ended by then). The issue that anybody making good money will run into is that very little will be left to forgive (unless they have a really high loan amount) since your payments may be high enough to match the standard repayment (which is meant to pay the loans off in 10 yrs).

This is partly true, when you are "attending level" you will be making enough money that you will be paying under the "standard repayment plan". However, the 3-6 years spent in residency paying under IBR (and paying near to nothing) will essentially mean that you will likely only be paying about 1/2 of your loans back when it's all said and done (mostly paid during the 4-7 year standard repayment phase after residency)......that still is a huge savings (~80000-200000 in most cases)