Public Service Loan Forgiveness 2017

[helloxkittyador]

OK 4th year students about to match and blah blah blah. Time to think about loans and debt. What is the current status of PSLF? I'm seeing differing information on whether PSLF money that is forgiven at the end of the 10 years is actually taxed or not. Is there a cap on the amount of forgiveness? Worries in changing political climate? I have buckos in debt from the cheesehead and will be in residency minimum 5 years. @whitecoatinvestor where you iz.

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[helloxkittyador]

Also - is it possible to work at a non-profit full time after residency while ALSO working at a private practice or getting some other form on income and still qualify for PSLF?

 

[Bru]

Nothing has changed from previous discussions. Lots of speculation. The first group of people coming up for loan forgiveness is coming up this fall so that might be a time to look out for.

As it stands, there isn't any downside to signing up for the program as soon as you enter residency assuming you are doing REPAYE/PAYE etc.

I suppose the only real immediate question is whether you want to waive the grace period and start making payment immediately or not. Otherwise with a min 5 year residency you will likely just go on autopilot with REPAYE w/ PSLF and see how it all shakes out in the coming years.

 

[Doctor Strange]

We had a long discussion about it at my school and the financial aid person was telling us about how she suspects that the PSLF program either A) won't be around for much longer or B) will be significantly changed in the future. Apparently, there has already been legislation proposed multiple times that would bar people from taking advantage of the forgiveness if their annual income is greater than a certain amount; she told us that past proposed legislation has gone in the ballpark of 100k.

I guess there's not any real detriment to applying to it now, but people shouldn't be banking on it to bail them out in the future.