Best routes for PSLF

[Techmed07]

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This is the Biden administration…the next one may not be so kind

 

[Desired Member]

The interest capitalizing makes absolutely no difference in PSLF because you aren't paying any of it back. This was a much bigger concern before we started seeing droves of MDs getting the actual debt wiped out. Now that we know it's here there is very little risk if you follow the instructions with the certification letters.

Now if you want to work part-time and pay back your debt, awesome for you. That doesn't make the interest capitalizing a concern for anyone actually pursuing PSLF. There are so many solid jobs that qualify for PSLF in the MD space that it's a very modest chain or no chain at all for people inclined to take these types of jobs.

I understand PSLF. I really do. I was simply sharing that I appreciate hearing Sushi’s perspective because I don’t hear it often and it’s nice to hear from someone who feels at least similarly. For some people it may not sit well psychologically to work 30+ hours weekly for 10 years making minimal payments, watching interest capitalize, and trusting it will be wiped out.

 

[Merovinge]

I understand PSLF. I really do. I was simply sharing that I appreciate hearing Sushi’s perspective because I don’t hear it often and it’s nice to hear from someone who feels at least similarly. For some people it may not sit well psychologically to work 30+ hours weekly for 10 years making minimal payments, watching interest capitalize, and trusting it will be wiped out.

There is nothing to trust, it is literally occurring on a daily basis as we speak. The PSLF option is part of the loan being taken out so the likelihood any changes do not grandfather current people with loans is very low. You could make some argument about the efficacy of republicans at stacking the courts that somehow could seek to completely undo this, but the likelihood there is the political will to do something like this is very low. PSLF is a lot different than wiping out 10-20k from everyone and I have heard of zero political will to remove it.

I personally paid back every cent and then 2k extra on my loans (grumble grumble), approx 1/4 million and did not do PSLF, I am not some evangel for this way, but it clearly is the right financial move for most people that went to med school without family/scholarship help. Being the right financial move does not mean it's the best life move but it is very often the best financial move and it's important for people to know that.

 

[annoyedpsychiatrist]

I understand PSLF. I really do. I was simply sharing that I appreciate hearing Sushi’s perspective because I don’t hear it often and it’s nice to hear from someone who feels at least similarly. For some people it may not sit well psychologically to work 30+ hours weekly for 10 years making minimal payments, watching interest capitalize, and trusting it will be wiped out.

To piggyback off last comment; even when trump wanted to get rid of it, part of his proposal was that people already in the program would stay in the program.

The simple solution is you dont spend the money that you have been keeping from your loans; you do what I do, invest. I invest that money into different avenues. The money isnt gone; its in growth funds which the annualized returns works out to be higher than the interest rate on my loan anyways.

 

[Desired Member]

There is nothing to trust, it is literally occurring on a daily basis as we speak. The PSLF option is part of the loan being taken out so the likelihood any changes do not grandfather current people with loans is very low. You could make some argument about the efficacy of republicans at stacking the courts that somehow could seek to completely undo this, but the likelihood there is the political will to do something like this is very low. PSLF is a lot different than wiping out 10-20k from everyone and I have heard of zero political will to remove it.

I personally paid back every cent and then 2k extra on my loans (grumble grumble), approx 1/4 million and did not do PSLF, I am not some evangel for this way, but it clearly is the right financial move for most people that went to med school without family/scholarship help. Being the right financial move does not mean it's the best life move but it is very often the best financial move and it's important for people to know that.

Yes, you said this very well: being the right financial move does not mean it’s the best life move. That’s exactly what I meant.