I am a 4th year med student going into Family Medicine and I know there are Loan Forgiveness programs out there but does anyone have more information on the topic? Also, I've heard if you work for a non-for-profit hospital for 10 years (residency included in this time) you can get all your debt wiped. Thanks!
Loan Forgiveness Programs
- Thread starter podgi237
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most federal/state loan forgiveness programs require working in a specific geographic area (HPSA) or type of practice (e.g. FQHC = fed qual health ctr, specific type of community clinic, and many do not qualify even if they serve poor patients). Some states (Kansas) have great and flexible programs. Some do not.
in our state, for example, it is easy to get approved for the program, but difficult to find a job in a major metro area that actually qualifies, and you are required to spend a minimum of 3 years at that job. If you decide to move and want to leave after 2 years, you have to pay back even more money than what they gave you. I know everyone is excited about rural medicine as an MS4, but in reality that is not where most people go or stay.
the 10-yr non-profit is also difficult because again, not all jobs actually qualify. You have to make 10 years' PAYMENTS either under a 10-yr repayment schedule or an IBR schedule, not just hang out in forbearance for 3 years of residency. That is quite challenging on a resident's salary; if you moonlight, you will probably cross the threshold for IBR and have to start repaying. Your loans have to be with Direct Loans, which may not be financially optimal during those 10 years. As Direct Loans points out on their website, most people will already be done paying off their loans at the end of 10 years.
I recommend making your decision NOT based on loan forgiveness options. I have worked with many people who got stuck having to go somewhere specific after residency (due to NHSC, state-specific loans, etc.), and the geographic constraints made life difficult.
in our state, for example, it is easy to get approved for the program, but difficult to find a job in a major metro area that actually qualifies, and you are required to spend a minimum of 3 years at that job. If you decide to move and want to leave after 2 years, you have to pay back even more money than what they gave you. I know everyone is excited about rural medicine as an MS4, but in reality that is not where most people go or stay.
the 10-yr non-profit is also difficult because again, not all jobs actually qualify. You have to make 10 years' PAYMENTS either under a 10-yr repayment schedule or an IBR schedule, not just hang out in forbearance for 3 years of residency. That is quite challenging on a resident's salary; if you moonlight, you will probably cross the threshold for IBR and have to start repaying. Your loans have to be with Direct Loans, which may not be financially optimal during those 10 years. As Direct Loans points out on their website, most people will already be done paying off their loans at the end of 10 years.
I recommend making your decision NOT based on loan forgiveness options. I have worked with many people who got stuck having to go somewhere specific after residency (due to NHSC, state-specific loans, etc.), and the geographic constraints made life difficult.
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