Out of network cash practices , student loans

[SM761987]

Hello everyone, I am new to this forum. I've been practicing for about a year now and would like to know what some of your thoughts are on student loans given the 2020 election and possibilities for future loan forgiveness. Has anyone changed their strategy from pay everything off ASAP to using an income based repayment method to aim for forgiveness or new repayment plans to come out?

Second, I've seen some states have a lot of practices that accept insurance plans only with out of network benefits or cash. Does anyone on here practice in that way? What are the pros and cons. I am considering being part time in one practice in network and part time another practice in another state / neighborhood out of network. Is this legal or can this be considered insurance fraud? I couldn't find any concrete answers regarding this on the internet. Perhaps someone on here can answer this question.

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[air bud]

No way loan forgiveness happens that affects us. Best case is for lower income people. Bernie isn't getting elected sorry

 

[DYK343]

No way loan forgiveness happens that affects us. Best case is for lower income people. Bernie isn't getting elected sorry

I am not doing it. I am repaying my loans. But are you sure or is this opinion? Pretty sure trump tried to disolve it and failed. It no longer exists for new borrowers but people who were in it/borrowed during the time it was promised were grandfathered in.

I have read that article about the 99% or something crazy that didnt get the loans forgiven. But almost all of them did not qualify in the first place. Simple rules to follow to get the student loan repayment. There is a white coat investor podcast I listened to on it. Breaks it down pretty simple. Sadly I do not qualify for the repayment program or I would at least consider it.

Edit: He did recommend taking the money you would be paying towards student loans and stock piling it in bonds/other investments so if you dont get forgiven you still have the cash. Less of a gamble that way. Lose on the interest rate which sucks but at the end of the forgiveness youre not completely screwed or on the bright side you have a huge cash bonus.

 

[air bud]

I am not doing it. I am repaying my loans. But are you sure or is this opinion? Pretty sure trump tried to disolve it and failed. It no longer exists for new borrowers but people who were in it/borrowed during the time it was promised were grandfathered in.

I have read that article about the 99% or something crazy that didnt get the loans forgiven. But almost all of them did not qualify in the first place. Simple rules to follow to get the student loan repayment. There is a white coat investor podcast I listened to on it. Breaks it down pretty simple. Sadly I do not qualify for the repayment program or I would at least consider it.

Edit: He did recommend taking the money you would be paying towards student loans and stock piling it in bonds/other investments so if you dont get forgiven you still have the cash. Less of a gamble that way. Lose on the interest rate which sucks but at the end of the forgiveness youre not completely screwed or on the bright side you have a huge cash bonus.

I don't think the poster is referring to PSLF, rather the crazy idea of Bernie or Liz cancelling student debt. (Not a political statement, I am neither L or R just know that idea won't work).

In regards to PSLF, ANOTHER reason not to go into podiatry - the lack of 501c3 that hire pods to even be eligible for the program. You go work for that local pod? Not eligible. You go work for that Ortho group? Not eligible. You go work for the sweet private MSG? Not eligible.

Didn't see that one coming did you?


Now are their some reasonable plans for forgiving debt base on salary and other things like volunteering and pro Bono work out there? Yes. We are talking about non medicine degrees here.

But the idea of the government forgiving debt for for doctors just because they don't like having to pay it back in the future is not happening.

Yes listen to WCI. Yes do what @DYK343 is talking about if actually lucky enough to be in a 501c3. You put the extra money you would put towards paying off into seminsafe investments so that in event doesn't work you have it saved already and can pay off loans. If you are granted loan forgiveness remember you do have to pay taxes on it, so you have theoney to do so and then also have the rest of it already saved and in a taxable account.

 

[air bud]

Also yes 99 percent rejected due to eligibility reasons. Supposedly that program has is amazingly hard to find correct info on then when it comes to verify enrollment and other stuff also a terrible bureaucracy.

Also there are residency programs that are set up as 501c3. So those 3 years count towards the 7. And a few fellowships too. Now I wouldn't hang my hat on that but cAn take into consideration.

 

[DYK343]

If you are granted loan forgiveness remember you do have to pay taxes on it,

I thought that was a myth/scare click bait someone started and was proven wrong. Pretty sure (not 100%) you dont have to pay taxes on forgiveness.

 

[DYK343]

"According to the Internal Revenue Service (IRS), student loan amounts forgiven under PSLF are not considered income for tax purposes. For more information, check with the IRS or a tax advisor. Does my income level determine my eligibility for PSLF? There is no income requirement to qualify for PSLF. "

https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service/questions

 

[Scrantonicity]

"According to the Internal Revenue Service (IRS), student loan amounts forgiven under PSLF are not considered income for tax purposes. For more information, check with the IRS or a tax advisor. Does my income level determine my eligibility for PSLF? There is no income requirement to qualify for PSLF. "

https://studentaid.ed.gov/sa/repay-loans/forgiveness-cancellation/public-service/questions

I'm on the Income Based Repayment plan---and yeah, I think it forgives the loan after 20 years or so....but it's not under PSLF, so I'll definitely have to pay taxes on the forgiven loan--so then I'll just owe the IRS. Sweet!

 

[air bud]

I'm on the Income Based Repayment plan---and yeah, I think it forgives the loan after 20 years or so....but it's not under PSLF, so I'll definitely have to pay taxes on the forgiven loan--so then I'll just owe the IRS. Sweet!

Gotcha this is what I meant had to pay taxes on. Far be it from me to spread baseless rumors.

 

[streetsweeper]

Doing IBR in hopes of PSLF is risky. Those interests keep piling. Let's say you switch job locations 2,3,5 years later for whatever reason and your new job doesn't fall under the 501c3 category...u just piled on more debt and back to square one. I really don't trust the government on this.

Suck it up.. refinance and pay it off.

 

[StressRisers]

Doing IBR in hopes of PSLF is risky. Those interests keep piling. Let's say you switch job locations 2,3,5 years later for whatever reason and your new job doesn't fall under the 501c3 category...u just piled on more debt and back to square one. I really don't trust the government on this.

Suck it up.. refinance and pay it off.

+1. Off the top of my head, I think the initial numbers were ~3% who got approved for PSLF. I'm too scared to let all that interest build up just to drown in it later. Compare several banking institutions for best refinance rates. If you live near one of their branches, First Republic has one of the most competitive rates. Check out Easy Refinance Student Loans Guides and Tools

 

[dtrack22]

I mean, I guess if your first job sucks or is in a location you have no interest staying in, then you should be careful of PSLF. But the rest of the chicken little stuff posted about PSLF is just that. Votes to cap PSLF $ amounts have failed. Votes to get rid of the program, ONLY for new borrowers, have failed. When is the last time the government has made itself smaller when it comes to any entitlement program or subsidy?

PSLF isn't going anywhere for those who are currently eligible, and the only thing that previous reports highlight is how dumb most of the borrowers are. The report everyone is referring to had 55 applications granted for forgiveness out of around 19,000 who applied for forgiveness. Only 8,000 people actually had qualifying loans or a qualifying employer. Around 50% of the applicants were applying for something they were never eligible for in the first place. Only 184 applicants had met all of the criteria and made 120 qualifying payments. You also have to remember that the data was a snapshot in time and newer reports suggest that the remaining individuals who applied and were eligible have gotten their loans forgiven.

I get not wanting to take the risk, but if you have a great gig with an eligible employer, with eligible loans and you do your yearly certification you will get your loans forgiven when the time comes. You just have to do a tiny bit of homework and follow the rules.

 

[DYK343]

Yeah when you read beyond the click bait title on those articles the vast majority of people applying did not qualify. The terms are very simple and straight forward. They are not hidden either you can easily find them with a google search. You have to read them and understand them which apparently 99% of American debt owners are unable to do.

I wish I qualified for it. I would probably do it. 100-200k forgiveness is a lot of $ back into my pocket for investing or home down payment.