Loan Forgiveness

Discussion in 'Psychology [Psy.D. / Ph.D.]' started by starsinnight, 09.26.14.

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  1. starsinnight

    starsinnight 7+ Year Member

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    09.30.08
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    Anyone know of anyone who has successfully done anything to forgive loans?

    I have one friend at the masters level receiving a $60,000 grant for her loans to be repaid in the coming months but she does in-home therapy and it's contracted for 2 years (not sure I'm up for that).

    And I've also been told by my supervisor that some VAs provide loan forgiveness, as he'll be getting soon, in addition to if you work at a VA for 10 years making minimum payments, they forgive the rest.

    Suggestions? I'd like to have a future home and not pay a mortgage of loans each month.
     
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  3. erg923

    erg923 Psychologist-VA 7+ Year Member

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    "Forgiveness" or assistance with payment? Big diff.

    There is a federal loan forgiveness program that requires 10 years of payments on the IBR or ICR and then the rest if forgiven. You have to work at a qualifying agency, of which the VA is one.

    My VA position came with 60K of loan payments. I make the payments each month and at the end of the year, the VA cuts me a check for the amount in payments I made over the previous 12 months.
     
    Last edited: 09.26.14
  4. IWillSurvive

    IWillSurvive

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    Wow! That's awesome. Did you negotiate that or is it part of the standard package at your VA? A job is still 3 years out for me but planning to be at the VA and will be needing some loan assistance.
     
  5. erg923

    erg923 Psychologist-VA 7+ Year Member

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    Its offered for some positions. Not really sure why my position has it while others don't. I don't perceive that mine was/would have been especially hard to fill.
     
  6. UnknownPsych

    UnknownPsych

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    The National Health Services Corps offers a loan repayment program for psychologists (amongst others) working in public service in underserved areas. From what I hear (I'm planning on applying next cycle), they pay $50k for 2 years of service.

    http://www.nhsc.hrsa.gov/
     
  7. Psycycle

    Psycycle Psychologist 10+ Year Member

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    I am fortunate enough to have VA loan repayment as well. They are paying my full loan. Things to know: they will only cover loans that they see as part of getting the degree that is related to your job. Like erg said, it's done by reimbursement, so the first year can be tough as they will condense your loan into five years and you have to front the money the first year. Last, and most important to your job search: if it's not in the job description, it's not negotiable. The posting must say "eligible for the education debt reduction program" or something similar. Otherwise, you cannot get it.
    Right now, I think VA funding is low, but it's hard to predict what will happen three years from now.
     
  8. PsychPsyance

    PsychPsyance 2+ Year Member

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    There is also the NIH LRP program for people that do qualifying research at least 50% of the time (and aren't federal employees). As for the IBR/ICR program, it's great if you're in a low-to-moderate income job (and it counts for all government funded positions, including university faculty). Under this program, I would be paying 1,600/mo, so my loans would all be gone well before the 10 year mark anyway (so it isn't worth it, especially since I have other options).

    Finally, the national guard offers $75,000 loan repayment over 3 years (this may be going up to $240,000). It's a pretty good deal for 1 weekend/mo and 2 weeks in the summer (assuming you don't get deployed, which in all honesty, isn't that bad for psychologists anyway).
     
  9. clinpsyc87

    clinpsyc87

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    Army reserve also offers 75k repayed. Additionally they offer 75,000 cash bonuses in combination with loan repayment. It's taxed at 28% though so take that into account.
     

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