Class of 2018, What's Your Number?

[Postictal Raiden]

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Thanks for the clarification! Im assuming you can switch over after residency? In your opinion do you believe PSLF will still be around in the next 5-10 years? or is it trending in the other direction?

In its current shape, I doubt the program will survive long enough for us to be benefit from it. There have been few proposals to cap the forgiveness at 50K or something like that. They'll keep chipping away from it till it becomes inferior to other repayment plans.

 

[BorntobeDO?]

Thanks for the clarification! Im assuming you can switch over after residency? In your opinion do you believe PSLF will still be around in the next 5-10 years? or is it trending in the other direction?

It will disappear or be capped within the net 2 years IMO. All of those who currently have direct loans will get grandfathered in tho IMO. If I was about to start DO school next fall, I would be thinking that I might get 1, maybe 2 eligible years for PSLF at most.

 

[keepItReal17]

It will disappear or be capped within the net 2 years IMO. All of those who currently have direct loans will get grandfathered in tho IMO. If I was about to start DO school next fall, I would be thinking that I might get 1, maybe 2 eligible years for PSLF at most.

In its current shape, I doubt the program will survive long enough for us to be benefit from it. There have been few proposals to cap the forgiveness at 50K or something like that. They'll keep chipping away from it till it becomes inferior to other repayment plans.

Sooooo is there any hope for an OMS0 or should I just see myself out? * starts perspiring profusely * lol thanks for your reply guys.

 

[Postictal Raiden]

Sooooo is there any hope for an OMS0 or should I just see myself out? * starts perspiring profusely * lol thanks for your reply guys.

Obviously we are all hopeful that if you have taken loans prior to any new changes, then you’d be grandfathered. However no one knows for certain. Not even lawmakers know what’s going to happen yet. Therefore, plan on not having any type of governmental assistance. If you don’t think your income as a physician would support your loans on a standard 10-year repayment plan, then you should reconsider your career choice.

Personally, I think any physician income, even a pediatric sub specialist in an academic setting (they earn in the mid 100s) can payoff 300k over 10 years while still having an average lifestyle.

 

[Stagg737]

I'll have ~40k in fed loans and ~200k in family loans (no interest). Plan to hopefully have fed loans payed off during residency/fellowship and have all loans paid off within 5 years off within 5 years of finishing residency (ultimate goal).

He hasn't even started residency yet? And taking those stipend type job offers is usually a poor decision.

I haven't started residency and I actually got my first job offer earlier this week, gave me some nice little lulz. Agree that jobs offered early in residency are typically a terrible decision though.

Thanks for the clarification! Im assuming you can switch over after residency? In your opinion do you believe PSLF will still be around in the next 5-10 years? or is it trending in the other direction?

As others have said, don't plan on gov aid to repay your loans, especially PSLF. PSLF and IBR were enacted in 2007 and Obama administration tried to cap it at 57.5k in 2014. The financial specialist that spoke to my class during graduation week said 2019 will likely be the year to watch for PSLF as that's when significant number of people will be able to actually start having loans forgiven. His prediction was as soon as those numbers come through the gov will likely make a move to change that plan pretty quickly. Either way, don't count on the help and if it's there then you've got a pleasant little surprise.

 

[BorntobeDO?]

I'll have ~40k in fed loans and ~200k in family loans (no interest). Plan to hopefully have fed loans payed off during residency/fellowship and have all loans paid off within 5 years off within 5 years of finishing residency (ultimate goal).



I haven't started residency and I actually got my first job offer earlier this week, gave me some nice little lulz. Agree that jobs offered early in residency are typically a terrible decision though.



As others have said, don't plan on gov aid to repay your loans, especially PSLF. PSLF and IBR were enacted in 2007 and Obama administration tried to cap it at 57.5k in 2014. The financial specialist that spoke to my class during graduation week said 2019 will likely be the year to watch for PSLF as that's when significant number of people will be able to actually start having loans forgiven. His prediction was as soon as those numbers come through the gov will likely make a move to change that plan pretty quickly. Either way, don't count on the help and if it's there then you've got a pleasant little surprise.

People have already had their loans forgiven, but the problem is that most physician groups are not the right type to get forgivness. You have to be government or 501(c)(3), which most physician groups are not. Plus the annual 'approval' paperwork doesn't actually count. The DOE only determines your eligibility after you do all 120 payments. This is the issue people have had early on. So if you are in academic medicine, PSLF is definitely something for you. But for most physicians who either work for a 'for-profit' group or clinic they are in trouble. Even if the hospital you work at is not-for-profit the group that services it, probably is.

You will drastically cut down your job market only applying to these type of jobs, and once people get educated on it, I wouldn't be surprised if they end up paying 50k+ less a year like academics. No free lunch.

 

[Coltuna]

Is REPAYE something that I set up now as I'm considering how much to accept for MS1 or something that I set up once I'm out into residency?

 

[ortnakas]

Is REPAYE something that I set up now as I'm considering how much to accept for MS1 or something that I set up once I'm out into residency?

When you graduate.
You can accept your loans with blissful denial until then.

 

[Stagg737]

People have already had their loans forgiven, but the problem is that most physician groups are not the right type to get forgivness. You have to be government or 501(c)(3), which most physician groups are not. Plus the annual 'approval' paperwork doesn't actually count. The DOE only determines your eligibility after you do all 120 payments. This is the issue people have had early on. So if you are in academic medicine, PSLF is definitely something for you. But for most physicians who either work for a 'for-profit' group or clinic they are in trouble. Even if the hospital you work at is not-for-profit the group that services it, probably is.

You will drastically cut down your job market only applying to these type of jobs, and once people get educated on it, I wouldn't be surprised if they end up paying 50k+ less a year like academics. No free lunch.

Definitely no free lunch, but if you're going into a field where you have a long residency and pursue fellowships after it's still a good option. Heck, it's even a good option for neurosurgeons and ortho people if they do fellowships as they may only need to work for a qualifying program for 2-3 years to get that loan forgiveness. If you're sitting on 350k+ in loans then it could very well be worth it.

As for 2019 being "the year to watch", here was the logic the speaker, a "medical finance expert" (Paul Garrard, ex-VP of AAMC student financial services), gave when he spoke to our class during graduation week about medical debt. Yes, a very small number of people have had forgiveness, but that's assuming they made their payments on time every single month for 10 years, which accounts for only a small number of people. The first significant cohort receiving forgiveness will be this year (2018), and the reports on this group likely won't hit the desks of congress until 2019. So according to him that's the year we're likely to see legislation proposals to either significantly change or eliminate PSLF, as that's when legislators will see how much this plan is actually costing the gov. Idk if that's how it will pan out, but that was his reasoning, which seems pretty accurate and likely imo.

 

[Dagrimsta1]

Definitely no free lunch, but if you're going into a field where you have a long residency and pursue fellowships after it's still a good option. Heck, it's even a good option for neurosurgeons and ortho people if they do fellowships as they may only need to work for a qualifying program for 2-3 years to get that loan forgiveness. If you're sitting on 350k+ in loans then it could very well be worth it.

As for 2019 being "the year to watch", here was the logic the speaker, a "medical finance expert" (Paul Garrard, ex-VP of AAMC student financial services), gave when he spoke to our class during graduation week about medical debt. Yes, a very small number of people have had forgiveness, but that's assuming they made their payments on time every single month for 10 years, which accounts for only a small number of people. The first significant cohort receiving forgiveness will be this year (2018), and the reports on this group likely won't hit the desks of congress until 2019. So according to him that's the year we're likely to see legislation proposals to either significantly change or eliminate PSLF, as that's when legislators will see how much this plan is actually costing the gov. Idk if that's how it will pan out, but that was his reasoning, which seems pretty accurate and likely imo.

If by some miracle PSLF manages to survive another 3 years, do you think that the people that start with qualifying payments will be grandfathered into the program?

 

[Stagg737]

If by some miracle PSLF manages to survive another 3 years, do you think that the people that start with qualifying payments will be grandfathered into the program?

From what I understand those who are currently in medical school should be grandfathered in as it is part of the potential repayment plans listed in the MPN. If you're making qualifying payments I'm sure you would likely be grandfathered as all the proposals to dismantle/limit it have included that wording according the specialist that spoke to us. I'm not really following it that closely as it doesn't apply to me, but my general advice is to always assume you'll have to pay the full amount back as it's better to be over-prepared than be hoping an option will be available and ending up screwed.

 

[HueySmith]

Anyone want to venture a guess as to when in the future will going to be medical school not be worth it anymore financially? (aside from actually wanting to be a doctor and all).

I say by 2030