Using a few online calculators, I came up with the following estimates:
My + Wife direct loan debt = 250,000 (most at 2.7, some at 6.8)
Our combined income starting at residency: 100k
I make 120 IBR payments. These start at around ~800-900k/month (obviously they go up when I am an attending but no more than the 10yr plan payments)
I do a surgery residency + fellowship (6-7 yrs), followed by being an attending at a university hospital for 3-4 years.
The government pays off the remaining 220K
This can't be for real...what am I missing?
The catch? well none for now.
The problem is the rules of the game can change. Some people don't think it can happen but ask them what happened to the ability to defer my loans for the length of my residenct. Gov decided that was expensive and got rid of it. Its expensive to
actually help people in debt...its very cheap to put words on paper, look like a f-ing rock star and expect a congress/president more than a decade from now to foot the bill for your vote grab.
Things I can envision:
1. Dropping the tax exempt status of that forgiveness. Like the 25 year plan the poster above mentioned..."we'll forgive the 250,000 but you owe us 125,000 of that in taxes...NOW!"
2. Limiting what is considered a PS job. But you've worked for 3 years at a job that
used to count. Whoops! sorry!
3. Impossing impossible paperwork req. to prove service. The direct loan folks don't keep track of your service, its up to you. Don't have that pay-stub from november 8 years ago? gee sorry.
4. Slave wages for new/renew contracts in PS jobs. "well gee you're going to get 250k in loans forgiven if you sign that 3 year contract with us...guess you won't mind making 70k a year right?"
Listen, this is either:
a. gov money flowing into loans -> in which case there are businesses with acountants a LOT smarter than you just imagining ways to screw you out of it.
b. A false promise.
its nice to think of it. I wouldnt make ANY plans based upon it. If you happen to do a PS job because thats what you want to do and it works out then great...otherwise, its just pie in the sky.
