Please PM me details on the William D. Ford Forgiveness Program! Thank you! 🙂
Since it is of some worth to others, I'll lightly brief on the details. The William D. Ford Forgiveness program forgives FEDERAL loans that you currently have as well as future loans you may have to take (should you ever have to pull private loans, choose another career path or manage your budgeting because there is no excuse to call for Sally Mae). Ill outline some details as well as cautions:
1) Debt to income : If you sit on 35k of loans for example and you dont meet the poverty threshold of your state then you easily qualify with $0.00 payments all is forgiven. I suggest working part time in any federal service job that offers a TSP plan because 10/10 times you will never pay another penny.
2) W-2 forms / 1095 / whole "shebang": Prove how much money you made / make and report this every 12 months to the program. Simply proof to show you still qualify in the program.
3) Report your loan payments: Obviously if your deal is $0.00 then no worry. If your arrangement with them is $40 a month then you must show that your still doing this.
4) When you have realized what your new payment plan is, for the service you pay $39 a month for 48 months. So you tell me which is better, paying your current or new-to-be loan payment plan, or the $39 a month for 4 years? You decide. If you going to pull 100k+ in future loans, they may extend your $39 a month for an extra 6 months or so. Oh well....
Now the caution:
1) you must report the following I listed for 120 months so once a year puts you at 10 years. Obviously you a broke student for four years plus perhaps a PGY1 OR even a PGY2. For simplicity lets say you specialize: 4 + PGY1 + PGY2 = 6 years of being broke. Residency pay will not throw you passed the threshold simply on its pay rate compared to straight retail out of getting your PharmD. So, on the 7th year, they will arrange a new payment of your loans since you now make a "good" salary to there standpoint. You will pay back a certain percentage depending how much they covered for you. So 230k in debt, perhaps they say you pay back 90k or less...that's something you will have to discuss with them.
2) you missed the deadline to report your earnings because it slipped your mind: Because it slipped your mind, the contract is void. NOW you have to pay it all with a set interest they placed for you. No good.
The Pros:
all is forgiven, and if you pull future loans in school that they forgive, whatever loan you pocketed after tuition / books / LIFE etc etc, guess what? you do just that. you POCKET the cash in your account. Colleague of mine is currently doing this and has pocketed 70k thus far debt free... he's an outlier so dont ride your hopes on this.
Qualifying for this program qualifies for extra scholarships given to those considered in "poverty." Aren't all students in poverty? yes, but proof of a program such as this writes it out for the university to be sent scholastic money on your behalf. I have a brother doing this right now.
My advice: If you have other options and currently not in pharmacy, please dig deep in yourself and consider the following: YOU are relying on a non-profit voucher amendment to pay you for your education. All it takes in the next decade is the government to change its mind. Do not go to this source without a back-up plan. If this is cut off by any means, you will be slaved to the very thing you went to school for. Its like fishing...Its great and fun on the lake when you do it out of passion. What if you NOW have to do it as a means for food? Passion seems to dwindle dont you think?
Heres a call-in to talk with an advisor: 310-432-6959. If not here look it up if your sketchy. Oh and FYI, if your claimed by your folks, you must file both of there taxes and typically that puts you out of the program or at least not as good if you could just claim yourself. Anyway, that's a start for you. Hope this gives some light for you on what you need to prepare for and the importance of budgeting.
