PSLF qualification

[Yellow mellow]

I just wanted to clarify something I read. To qualify for PSLF, you need to have made 120 payments on IBR or a ten year repayment plan, otherwise, if you're on ICR or PAYE, your 120 payments will not qualify for PSLF.
I need to know because currently I'm on IBR but was hoping to switch to PAYE once or if it becomes available in 12/2015. And would eventually like to qualify for PSLF.
So is this true ?

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[RangerBob]

IBR, PAYE, the standard 10-year payment plan, and I believe ICR as well, are all eligible repayment programs for PSLF. Obviously the standard 10-year repayment plan is only going to benefit you if you spent time in one of the income-based repayment programs.

I would look into things before switching to the new/extended PAYE--it may come with a limitation on how much you can get forgiven through PSLF. Or that may be something enacted based on when you took your loans. Or it may not be enacted at all this year. But it's something the administration was toying with. I doubt it would make a difference to switch to the new PAYE, but just make sure to read the find print when it gets extended.

 

[Yellow mellow]

Since my last original post, I did find that the preliminary changes will affect married couples who may or may not want to file jointly, it will not matter, because both incomes will be used to calculate repayment amount. I was afraid of the cap on PSLF but there was no mention of this changing, at least not yet. Oh and the 20 year repayment will only apply to those with undergraduate loans, otherwise, it will be 25 years for those with undergrad and graduate loans.
I know I will have to read the fine prints and asks a lot of questions before switching. I will say that IBR to REPAYE will lower my monthly payment by a third so that will be significant for me.

 

[deleted158872]

Could someone please help me find a list of hospitals that qualify under PSLF program? Been looking for that but couldn't find anything...

 

[RangerBob]

Could someone please help me find a list of hospitals that qualify under PSLF program? Been looking for that but couldn't find anything...

I'm not sure if there is a list. And it's tough--that list only helps if the hospital directly employs its physicians. Many hospitals are non-profits, but the physicians are often employed by a private physician's group, usually for-profit. What really maters is who your actual employer is, not whether where you work is non-profit. Most (but not all) residency programs qualify for PSLF, but many of those residents if they take an attending job at their academic hospital will no longer qualify.

Just be sure to look into details like that when applying for a job.

 

[deleted158872]

Thanks. Then how do I know if my employer qualifies when I apply for a job? What details should I look for?

 

[RangerBob]

Thanks. Then how do I know if my employer qualifies when I apply for a job? What details should I look for?

So far I've only had to find out if specific residency programs are non-profits, so I don't have a ton of experience here. But I imagine when I start applying for jobs over the next year, I would just ask them if they are a non-profit. I would also ask who my actual employer would be (the hospital or a physicians group). Then I'd probably go to their website online just to confirm.

I believe the IRS has a website that lets you search for a company to see if it's a non-profit--I thought I read that here once. If that does exist, I'd use that. But I would definitely clarify who my actual employer would be.