Massive Loan Forgiveness By Doing Residency At A Nonprofit Hospital

jkdoctor

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By JOSH MITCHELL
Jul 20, 2016 10:45 am ET
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Many highly paid doctors are poised to get a very large windfall from the federal government.

A program designed to ease the student-debt burden of teachers, public defenders and other modestly paid workers in the public sector is also set to help thousands of physicians, many of whom work for nonprofit hospitals. On average, recent medical-school graduates who enroll in the program will have roughly $131,000 in their student debt forgiven.

That’s the finding of a study published in June by the Journal of General Internal Medicine. The peer-reviewed paper shows how new physicians are increasingly enrolling in a program known as Public Service Loan Forgiveness. The Wall Street Journal reported on the so-called “doctor’s loophole” last year.
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The program applies to just about anyone who works for a nonprofit, regardless of salary. An increasing share of physicians—including highly paid specialists like surgeons–are eligible as nonprofits buy up hospitals and private practices. Three-quarters of hospitals are either nonprofit or owned by the government, according to the American Hospital Association.

Physicians are particularly well positioned for big payouts. The typical borrower owed a median $162,000 upon leaving medical school in 2012, according to the New America Foundation.

And they don’t earn big salaries right away. Doctors typically earn between $50,000 and $60,000 in the first three to eight years out of school as they complete training, known as “residency.” Thus, the amount they pay under income-based repayment will be low, at least through training.

http://blogs.wsj.com/economics/2016/07/20/government-on-track-to-forgive-up-to-131000-in-student-debt-for-thousands-of-doctors/
 

GUH

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This is why I am very skeptical of my classmates who plan to obtain loan forgiveness through this program. The government will pull out the rug under the feet of "highly-paid doctors" who chose to work at nonprofits when they might have passed up on better opportunities elsewhere, perhaps after many of those physicians had spent years working there.
 

SLC

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This is why I am very skeptical of my classmates who plan to obtain loan forgiveness through this program. The government will pull out the rug under the feet of "highly-paid doctors" who chose to work at nonprofits when they might have passed up on better opportunities elsewhere, perhaps after many of those physicians had spent years working there.
I don't count on it working out. But I'm sure as hell signed up and using the program.

And the largest salaries I've been offered (by far) have been with nonprofits. I'm looking into a Primary care job at present that pays $350k per year.
 

GUH

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I don't count on it working out. But I'm sure as hell signed up and using the program.

And the largest salaries I've been offered (by far) have been with nonprofits. I'm looking into a Primary care job at present that pays $350k per year.
It's awesome if you're going to work there anyways; there's nothing to lose by signing up.
 

Ibn Alnafis MD

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I don't count on it working out. But I'm sure as hell signed up and using the program.

And the largest salaries I've been offered (by far) have been with nonprofits. I'm looking into a Primary care job at present that pays $350k per year.
I'm amazed by the generous offers FM residents are getting nowadays. The second year FM resident at my rotation site told me he receives 5+ calls daily from recruiters. It has never been a better time to go into primary care medicine.
 
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SLC

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I'm amazed by the generous offers FM residents are getting nowadays. The second year FM resident at my rotation site told me he receives 5+ calls daily from recruiters. It has never been a better time to go into primary care medicine.
It's true, I get multiple calls and emails daily. And salaries are really getting good.
 
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235009

And so it begins....


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6

68PGunner

This clown Josh Mitchell has been writing PSLF articles against physicians on the WSJ every 6-12 months. Nothing new here.
 

IslandStyle808

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Is that 350K for a rural job? Excuse my ignorance but how does a PC physician make this much a year?
I think what surprises me the most is the fact that it is the starting salary!
 

DrBowtie

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I think what surprises me the most is the fact that it is the starting salary!
Big number to get you there. Hope you set up roots and won't leave when you miss the RVU requirements after the salary guarantee is up and your pay goes down. Beware job adverts that seem too good to be true.
 

IslandStyle808

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Big number to get you there. Hope you set up roots and won't leave when you miss the RVU requirements after the salary guarantee is up and your pay goes down. Beware job adverts that seem too good to be true.
Agreed. It made me raise an eyebrow.
 

SLC

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Big number to get you there. Hope you set up roots and won't leave when you miss the RVU requirements after the salary guarantee is up and your pay goes down. Beware job adverts that seem too good to be true.
That's the base salary for the life of the contract (3 years) There is no productivity requirement.

I'm also expected to round on inpatients and pull shifts in the ED once or twice a month.

I'll be working my ass of to earn that pay, but it's in a good location and I could use the money up front to try to pay down loans.

We'll see how it looks when I go out for my sight visit in a few weeks, though I know this company well, I did rotations there as a Med-student at one of their other clinics.
 
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DrBowtie

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That's the base salary for the life of the contract (3 years) There is no productivity requirement.

I'm also expected to round on inpatients and pull shifts in the ED once or twice a month.

I'll be working my ass of to earn that pay, but it's in a good location and I could use the money up front to try to pay down loans.

We'll see how it looks when I go out for my sight visit in a few weeks, though I know this company well, I did rotations there as a Med-student at one of their other clinics.
Wasn't necessarily commenting specifically on that specific job, but just a general tactic I've seen used with more undesirable locations.

To pull high earnings you either need to produce high RVUs or be supported by a hospital subsidy to provide services there.

Devil is always in the details.
 

OutRun

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I don't count on it working out. But I'm sure as hell signed up and using the program.

And the largest salaries I've been offered (by far) have been with nonprofits. I'm looking into a Primary care job at present that pays $350k per year.
Nice! Never a better time to be in FM!