IBR Provides Disgruntled Physicians a Way Out?

[punkedoutriffs]

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Quick question:

I don't know the details well, but from what I've gleaned from a few threads, IBR's stipulate that you only have to pay 15% of your income above poverty level for (was it 10 or 20 years) before total loan forgiveness.

I've also been reading some of the "would you do it again" threads which seems to suggest that a portion of those in medicine would readily exit the profession if their loans were not hanging over their heads.

Now does the implementation of IBR's provide a way out for these guys? I assume they would have to work for a non-profit for 10/20 years but if this option is valid I would imagine quite a few who may be willing to take that deal.

Is this possible or am I uninformed?

 

[doctorFred]

Quick question:

I don't know the details well, but from what I've gleaned from a few threads, IBR's stipulate that you only have to pay 15% of your income above poverty level for (was it 10 or 20 years) before total loan forgiveness.

I've also been reading some of the "would you do it again" threads which seems to suggest that a portion of those in medicine would readily exit the profession if their loans were not hanging over their heads.

Now does the implementation of IBR's provide a way out for these guys? I assume they would have to work for a non-profit for 10/20 years but if this option is valid I would imagine quite a few who may be willing to take that deal.

Is this possible or am I uninformed?

sort of.

you need to make 120 consecutive payments (10 years) under IBR while working for a non-profit and then your loans are forgiven (if the program still exists or is not modified in 10 years.. there are no guarantees and you sign no agreements.) if you're not working for a non-profit, your loans are forgiven after 25 years.

however, you shouldn't totally underestimate IBR payments for those with large debt burdens. while it's only 300-500 dollars a month for those in residency, it increases significantly afterwards (my IBR payments will be ~30 grand a year.)

 

[punkedoutriffs]

however, you shouldn't totally underestimate IBR payments for those with large debt burdens. while it's only 300-500 dollars a month for those in residency, it increases significantly afterwards (my IBR payments will be ~30 grand a year.)

Well, let's say if you quit medicine and start working for a non-profit that pays you around a resident's salary. Won't that mean that your payments for the entire pay period would only be about 300-500 a month?

 

[doctorFred]

Well, let's say if you quit medicine and start working for a non-profit that pays you around a resident's salary. Won't that mean that your payments for the entire pay period would only be about 300-500 a month?

i'm not sure what kind of non-profit hires MDs and pays them 50 grand a year, but technically, that's true. then again, you'd be living on a resident's salary for 10 years, which some might consider not worth the time and money that went into earning the MD in the first place (you're talking about 50 grand = ~38 grand after taxes = ~32 grand after loan payments.)

also, i believe you need to work at least 30 hours a week for the entire 10 year period, which means no extended time off or part-time position. so yes, it's an option, but it's not exactly a perfect "way out."

 

[doc20]

are most hospitals considered not for profit though? even working in an academic health center would qualify right?

 

[punkedoutriffs]

i'm not sure what kind of non-profit hires MDs and pays them 50 grand a year, but technically, that's true. then again, you'd be living on a resident's salary for 10 years, which some might consider not worth the time and money that went into earning the MD in the first place (you're talking about 50 grand = ~38 grand after taxes = ~32 grand after loan payments.)

also, i believe you need to work at least 30 hours a week for the entire 10 year period, which means no extended time off or part-time position. so yes, it's an option, but it's not exactly a perfect "way out."

Okay, good to know regardless. Thanks for clarifying.

 

[doctorFred]

are most hospitals considered not for profit though? even working in an academic health center would qualify right?

my rule of thumb (disclaimer - not 100% reliable, but pretty close): if it has a residency program, it qualifies. if it doesn't, it doesn't.

 

[ShyRem]

About 80% of hospitals are non-profit.

 

[Flopotomist]

my rule of thumb (disclaimer - not 100% reliable, but pretty close): if it has a residency program, it qualifies. if it doesn't, it doesn't.

Be very very careful here. Just because a HOSPITAL is a not-for-profit hospital does NOT mean that the physicians working there are necessarily eligible under IBR. Many (most??) physicians work for a group that is contracted for by the hospital. The docs paychecks come from this group, which may be for profit, and they are therefor not eligible.

 

[doctorFred]

Be very very careful here. Just because a HOSPITAL is a not-for-profit hospital does NOT mean that the physicians working there are necessarily eligible under IBR. Many (most??) physicians work for a group that is contracted for by the hospital. The docs paychecks come from this group, which may be for profit, and they are therefor not eligible.

many do, but i wouldn't say "most".. there are plenty of hospitalists, general surgeons, er docs, ID, pathology, etc. who are just hospital employees. but yes, being in a for-profit group disqualifies you.

 

[thedrjojo]

sort of.

you need to make 120 consecutive payments (10 years) under IBR while working for a non-profit and then your loans are forgiven (if the program still exists or is not modified in 10 years.. there are no guarantees and you sign no agreements.) if you're not working for a non-profit, your loans are forgiven after 25 years.

however, you shouldn't totally underestimate IBR payments for those with large debt burdens. while it's only 300-500 dollars a month for those in residency, it increases significantly afterwards (my IBR payments will be ~30 grand a year.)

irb can never be more than the standard repayment would have been... but yeah my payment will be like 2k a month on standard so 24k a year...

the op was saying if you want to leave medicine and say become a teacher then yeah irb seems to be a way to do this...but if you do the 25 year route which was decreased to 20 years for loans after 2010 i think the amount forgiven is taxable i believe so that could be 200k+ so you could get a large bill at that point