Contract Negotiation Loan Repayment

[Relentlessrook18]

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Have a contract with a group that’s going to guarantee me 220k x 1 year. Loan repayment is kinda low 12k/year x 3 years. Sign on is 15k. Relocation is decent. Probably don’t need as much as they are offering since I’m right out of residency with little to move. The area is a small Southwest town of 30-40k. I don’t think it’s a super desirable area to live in, although my wife and I think it’s nice. Job is with a large health system over several states. People that have negotiated before, is this a low amount for loan repayment? I’ve got friends that are getting 20k/yr in other areas back East. Not large towns either.

 

[VA Hopeful Dr]

Have a contract with a group that’s going to guarantee me 220k x 1 year. Loan repayment is kinda low 12k/year x 3 years. Sign on is 15k. Relocation is decent. Probably don’t need as much as they are offering since I’m right out of residency with little to move. The area is a small Southwest town of 30-40k. I don’t think it’s a super desirable area to live in, although my wife and I think it’s nice. Job is with a large health system over several states. People that have negotiated before, is this a low amount for loan repayment? I’ve got friends that are getting 20k/yr in other areas back East. Not large towns either.

That's about what my Southeast town of the same size is willing to do.

 

[cabinbuilder]

Sign on is low for SW in that small of a town. That's a good starting wage.

 

[Relentlessrook18]

Sign on is low for SW in that small of a town. That's a good starting wage.

What should I be expecting? 30k for sign on? More?

 

[cabinbuilder]

What should I be expecting? 30k for sign on? More?

Mine was 30K plus 10K moving especially in a rural area where there is a doctor shortage. Remember on the bonus they take the taxes out before they cut you the check so that 15K will be more like 10K. The moving costs are generally reimbursed so you have to put that up front.

 

[septoplasty]

Have a contract with a group that’s going to guarantee me 220k x 1 year. Loan repayment is kinda low 12k/year x 3 years. Sign on is 15k. Relocation is decent. Probably don’t need as much as they are offering since I’m right out of residency with little to move. The area is a small Southwest town of 30-40k. I don’t think it’s a super desirable area to live in, although my wife and I think it’s nice. Job is with a large health system over several states. People that have negotiated before, is this a low amount for loan repayment? I’ve got friends that are getting 20k/yr in other areas back East. Not large towns either.

This is also taxable now (if they're providing the services) vs. if you submit receipts.

 

[SLC]

What should I be expecting? 30k for sign on? More?

Mine was 20k, plus monthly stipend between when I signed and when I started, plus $20k moving expenses, plus $30k/yr loan repayment

 

[Relentlessrook18]

Mine was 20k, plus monthly stipend between when I signed and when I started, plus $20k moving expenses, plus $30k/yr loan repayment

Did you have to negotiate this or did they offer that up front?

 

[SLC]

Did you have to negotiate this or did they offer that up front?

That was the up front offer.

I’m rural, but same system non rural job had same signing bonus and relocation, without stipend or loan repayment.

 

[goldsummer]

Mine was 20k, plus monthly stipend between when I signed and when I started, plus $20k moving expenses, plus $30k/yr loan repayment

Is the Loan repayment reimbursed? or they pay you/the loan company directly on top of your salary?

 

[SLC]

Is the Loan repayment reimbursed? or they pay you/the loan company directly on top of your salary?

They pay the loans directly for me, it’s on top of my base salary. I gave them statements and told them how to break up the monthly amount and they take care of the rest.

 

[deleted951662]

They pay the loans directly for me, it’s on top of my base salary. I gave them statements and told them how to break up the monthly amount and they take care of the rest.

Is there a tax advantage to doing this?

 

[goldsummer]

They pay the loans directly for me, it’s on top of my base salary. I gave them statements and told them how to break up the monthly amount and they take care of the rest.

Well that looks like a really good offer... Nothing I've come across so far has been quite that good.

 

[SLC]

Is there a tax advantage to doing this?

No clue TBH.

 

[SLC]

Well that looks like a really good offer... Nothing I've come across so far has been quite that good.

Yeah, it was a very good offer.

Another thing to look at when being offered financial incentives (sign on bonus etc) is to find out if the money is “grossed up” or not. Grossing up means they hold out taxes on the amount prior to disbursing to you, I.e. no extra income tax at the end of the year.

My offers were all grossed up, so I got the amount they promised, and the tax was pre-witheld.