Public Service Loan Forgiveness while at hospital for 10yrs?

[deleted913442]

Hey everyone,

I'm just curious how true this is, but I heard this both from someone who was externing and an attending at a program (both for OMFS) that you could work for a non-for profit hospital for 10yrs and make minimal loan payments and get your loans forgive (federal loans only) - residency does count towards this. I've heard that at 6yr programs who have you on-call during med school years (you're considered an employee and still get a stipend), you can knock off 6/10 years if youre paying your loans off during residency. Just curious how true this is and what anyone else has heard.

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[Big Time Hoosier]

Hey everyone,

I'm just curious how true this is, but I heard this both from someone who was externing and an attending at a program (both for OMFS) that you could work for a non-for profit hospital for 10yrs and make minimal loan payments and get your loans forgive (federal loans only) - residency does count towards this. I've heard that at 6yr programs who have you on-call during med school years (you're considered an employee and still get a stipend), you can knock off 6/10 years if youre paying your loans off during residency. Just curious how true this is and what anyone else has heard.

It’s known as the doctor loophole. Eventually it’ll be closed out of fiscal necessity. America is hemorrhaging money right now, and we were dead broke to begin with.

U.S. Student-Loan Forgiveness Program Proves Costly

The U.S. is braced to forgive billions of dollars in student loans to doctors and other white-collar Americans with expensive educations, under a 2007 law designed to help modestly paid workers in public service. The loan forgiveness doesn’t kick in until 2017 for the first enrollees, but the...

www.wsj.com

Big Hoss

 

[deleted913442]

It’s known as the doctor loophole. Eventually it’ll be closed out of fiscal necessity. America is hemorrhaging money right now, and we were dead broke to begin with.

U.S. Student-Loan Forgiveness Program Proves Costly

The U.S. is braced to forgive billions of dollars in student loans to doctors and other white-collar Americans with expensive educations, under a 2007 law designed to help modestly paid workers in public service. The loan forgiveness doesn’t kick in until 2017 for the first enrollees, but the...

www.wsj.com

Big Hoss

When do you think it’ll close? Do you think it’s worth making loan payments during a hospital residency just in case it doesn’t close?

 

[tooth-tastic]

Hey everyone,

I'm just curious how true this is, but I heard this both from someone who was externing and an attending at a program (both for OMFS) that you could work for a non-for profit hospital for 10yrs and make minimal loan payments and get your loans forgive (federal loans only) - residency does count towards this. I've heard that at 6yr programs who have you on-call during med school years (you're considered an employee and still get a stipend), you can knock off 6/10 years if youre paying your loans off during residency. Just curious how true this is and what anyone else has heard.

Yes and no. If you're enrolled in an income based repayment plan while working as a hospital resident, your payments would technically count towards forgiveness. The caveat is that a 6 yr OMFS resident, while enrolled in Med school, is classified by his/her student loan provider with an "in school status" which makes one ineligible for enrollment into the IBR plan that would ultimately contribute towards loan forgiveness. After finishing Med School and transitioning from the "in school status," then one would be able to take advantage of the IBR-loan forgiveness opportunity. Obviously, this loan forgiveness route isn't particularly amenable to the 6-yr OMFS track, but the majority of 6-yr residents borrow loans while in med school anyway.

 

[deleted913442]

Yes and no. If you're enrolled in an income based repayment plan while working as a hospital resident, your payments would technically count towards forgiveness. The caveat is that a 6 yr OMFS resident, while enrolled in Med school, is classified by his/her student loan provider with an "in school status" which makes one ineligible for enrollment into the IBR plan that would ultimately contribute towards loan forgiveness. After finishing Med School and transitioning from the "in school status," then one would be able to take advantage of the IBR-loan forgiveness opportunity. Obviously, this loan forgiveness route isn't particularly amenable to the 6-yr OMFS track, but the majority of 6-yr residents borrow loans while in med school anyway.

Even if you’re still on call/an employee of the hospital, the in school status would override it? I know there’s a handful of programs where they still have you employed during residency.

Agreed with the additional loans for the med school years. That’s where it definitely gets sticky.

 

[allDAT]

You have to be full-time to be eligible for PSLF.