Loan Forgiveness/Repayment Programs

[baylormed]

Other than the military (which I don't plan on doing), are these programs a good option?

I know that for many of these you have to choose primary care, but if you do, do you have a say in the location to which they will send you after graduation?

I am just wondering how this works.

Thanks for any info.

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[Polypeptide]

It seems like any program offering loan repayment is could be an option IF it works for you and your situation. It is something I am willing to consider in the future but since I do not know 100% what specialty I will be pursuing I will not commit to anything (like National Health Service Corps, or even the primary care loans which have penalties for not following through with primary care).

In the case of the National Health Service Corps, if you do their loan repayment program you are only commited to your "assignment" year by year, with a minimum of two years. So you have to stay for two years, and can stay more. The reimbursement is up to 25K for each of those two years. If you stay on for additional years the max reimbursement continues to increase.

So my question to consider about this program: is the salary in the positions competitive enough to make the reimbursment worthwhile? In other words, Can I make 25K more working somewhere else? Always lots of details to think about.

 

[Droopy Snoopy]

Other than the military (which I don't plan on doing), are these programs a good option?

I know that for many of these you have to choose primary care, but if you do, do you have a say in the location to which they will send you after graduation?

I am just wondering how this works.

Thanks for any info.

My state's program designates a few counties which are considered medically underserved. If you take the scholarship, you're agreeing to go into some type of primary care (FP, OB, or Peds) and serve 4 years in any one of these counties after completing residency.

 

[Critical Mass]

Indian Health Service and Public Health Service have programs if you are willing to work for the government when you are done. The NIH used to have loan repayment programs for people who want to research in selected areas when they are done.

I know of a couple of states that have rural primary care scholarships (paging lilnoelle...).

The ones that I am familiar with are state-sponsored and allow for practice anywhere but the major metro areas that they define for you when you agree to the program. I don't know anything about Texas. Sorry sweetness.

With UTSW tuition rates, I'd just take out Staffords and worry about everything else when you decide what specialty you'd like to do. As far as I can see, going to med school in Texas is the same thing has having a half-tuition scholarship at just about any other school in the country, 1/4 if you are comparing to private or oos rates.

 

[saradoor]

Other than the military (which I don't plan on doing), are these programs a good option?

I know that for many of these you have to choose primary care, but if you do, do you have a say in the location to which they will send you after graduation?

I am just wondering how this works.

Thanks for any info.

Check out BCM's world renowned Baylor International Pediatric Aids Initiative ( http://bayloraids.org ). It is hard to get in but they offer med school loan reimbursement plus a stipend (more from news: http://www.chron.com/disp/story.mpl/headline/metro/4620848.html )

 

[jeniffer lopez]

Check out NIH's program. I have heard it is really really good, and you get to do research!

 

[hector219]

When weighing the costs remember that the NHSC is an upfront lump sum and is tax free. This means you avoid a significant amount of taxation and interest.

 

[meister]

That is very interesting. Does anyone know if they will reimurse you for tuition and fees you have already paid with Stafford and grad PLUS loans? I'm an M1 and have already sunk $40k in tuition into this adventure, I'd like to know that if I choose to do NHSC if they would spot me for that $40k if I pledge to do an additional year or whatever.

 

[dragonfly99]

That is very interesting. Does anyone know if they will reimurse you for tuition and fees you have already paid with Stafford and grad PLUS loans? I'm an M1 and have already sunk $40k in tuition into this adventure, I'd like to know that if I choose to do NHSC if they would spot me for that $40k if I pledge to do an additional year or whatever.

I don't think so, but I'm sure you can find out by surfing the web or asking your school's financial aid officers.

 

[Habeed]

The thing about these programs is that nothing is free. Yes, various organizations may be able to offer loan forgive/repayment...but the money to do that comes from the budget they use to hire you with at a lower salary.

So, ultimately, the amount of the repayment+salary will have to come to less than the 'free market' price for the same job, and it will probably not be a good financial decision to take the program.

 

[smq123]

That is very interesting. Does anyone know if they will reimurse you for tuition and fees you have already paid with Stafford and grad PLUS loans? I'm an M1 and have already sunk $40k in tuition into this adventure, I'd like to know that if I choose to do NHSC if they would spot me for that $40k if I pledge to do an additional year or whatever.

No, they do not reimburse you for "back tuition" if you become an NHSC scholar in your MS2 or MS3 year. So you're on your own to pay for that initial $40K, and I don't think that any amount of bargaining is going to help.

 

[nontrdgsbuiucmd]

The thing about these programs is that nothing is free. Yes, various organizations may be able to offer loan forgive/repayment...but the money to do that comes from the budget they use to hire you with at a lower salary.

So, ultimately, the amount of the repayment+salary will have to come to less than the 'free market' price for the same job, and it will probably not be a good financial decision to take the program.

I was just thinking something along these lines..there is also a program under the direct loan servicing entity for federally consolidated student loans, such that if you work for the Government and make student loan payments for 10 years, the remaining portion is forgiven (and counts as taxable interest). But the studies I've seen show that, other than for primary care and IM, the salary at the Government runs a significant portion (like 20%+) less than comparable salaries elsewhere.

I think for any of these programs that would pay back your loans, you'd need to commit to working somewhere most people would not want to voluntarily work or accept a far lower salary in order to have someone pay back the costs of your education.. I'd rather earn an extra 50K per year, live where I chose, and pay an extra 30K of that extra salary to pay back my own loans personally. Not that I would have ANY complaint if there were a program that paid me the going rate and paid for med school on top of that!