Student loans

[PTPuser]

I would appreciate it if you folks can give some recommendations on how to tackle this.

I have 377K, all direct which will qualify for PSLF and I'll be a resident at a state hospital. Wanted to get started on that process if I can to offload 3 out of the 10 years.

The calc shows a 6.8% if were to consolidate and my amount will still be 377K. Should I consolidate or no?

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[wakaflocka88]

The only way to do PSLF is to first, consolidate all your federal loans to Mohela. Mohela is the only one that will qualify you for PSLF. It’s a long application processing time so start it soon. Once Mohela receives your loan then there’s paperwork you have GME fill out yearly to confirm you are a employee/reisdent at a participating non profit org. From there, just apply for some type of income based repayment, even a monthly payment of 200-300 will count as one out of 120 total payments needed for PSLF. You can set it to auto-debit so you won’t forget or miss a payment. Obviously the more payments you can make under IBR at a low salary will benefit because once you make it big and slaying $750k a year, your monthly payments will skyrocket but those payments still count towards PSLF as long as your employer isn’t a PP shmuck.

God speed my friend. Fight for the coveted job and start networking day 1 of residency.

 

[Feli]

Yep... great advice above. The hard part will be getting a PSLF job... always there if you want them for MDs, pretty rare for podiatry.

You can only make one payment per month... do not miss any during residency. Your IBR payments will be at least $2k or $3k/mo or so once out of training (any job that works for PSLF has that income).

 

[PTPuser]

The only way to do PSLF is to first, consolidate all your federal loans to Mohela. Mohela is the only one that will qualify you for PSLF. It’s a long application processing time so start it soon. Once Mohela receives your loan then there’s paperwork you have GME fill out yearly to confirm you are a employee/reisdent at a participating non profit org. From there, just apply for some type of income based repayment, even a monthly payment of 200-300 will count as one out of 120 total payments needed for PSLF. You can set it to auto-debit so you won’t forget or miss a payment. Obviously the more payments you can make under IBR at a low salary will benefit because once you make it big and slaying $750k a year, your monthly payments will skyrocket but those payments still count towards PSLF as long as your employer isn’t a PP shmuck.

God speed my friend. Fight for the coveted job and start networking day 1 of residency.

This might be something I'd have to call the loan service company to be sure but I read online that one doesn't need to consolidate to qualify for PSLF, no?

I have like 12 different loans disbursement but thankfully they're all direct so they should qualify.

Some people were telling me it might be worse to consolidate but I genuinely don't know.

 

[icebreaker32]

Yep... great advice above. The hard part will be getting a PSLF job... always there if you want them for MDs, pretty rare for podiatry.

You can only make one payment per month... do not miss any during residency. Your IBR payments will be at least $2k or $3k/mo or so once out of training (any job that works for PSLF has that income).

Also sounds weird, but pretty sure you can never make more than a minimum payment also or those payments don’t count. I am fairly certain most need to consolidate.

Learn all the fine print for all this and do not depend on the internet.

 

[wakaflocka88]

This might be something I'd have to call the loan service company to be sure but I read online that one doesn't need to consolidate to qualify for PSLF, no?

I have like 12 different loans disbursement but thankfully they're all direct so they should qualify.

Some people were telling me it might be worse to consolidate but I genuinely don't know.

As far as I know you have to consolidate. I did it last year and luckily all the Covid pause and residency years counted plus a few years of working at my MSG shaved off 6 years. I have 4 years left of IBR payments, ya it’s high right now but it’s only up to a certain percentage even if high income.

 

[Hybrocure]

The current system to pay based on income is 10%. This is what I do. It’s comfortable enough for me. I can do this for a couple decades honestly and I’m fine with that.

Do not expect to get a job on graduation that qualifies you for loan forgiveness. I don’t see myself making over 250k to where I’ll actually have the ability to pay them off otherwise.

But I also do TFP/lobster work and that’s my jam. I’m not trying to shoot for the stars. My work life balance is perfect and happy.

 

[wakaflocka88]

Also OP. Let’s say you work for a crummy PP job - high likelihood, sorry being honest. You can get on privileges/staff at your local area hospitals and usually the HR will sign off on your PSLF verification form too even if you’re not employed there but maybe take call/do cases/on medical staff there. So you can be working for a non profit PP but have privileges with a non profit hospital and as long as they sign off on your yearly verification PSLF form you’re golden.

Your pay may suck. Life will suck. But at least IBR on a crappy salary is minimal and making 120 payments of those as long as whatever local area hospital you’re on staff at will sign off your verification forms then you’ll be okay

 

[PTPuser]

Haha, I am absolutely not expecting to get a loan forgiveness job after residency. I've been on this forum long enough to stop dreaming.

My philosophy is since my program technically qualifies for PSLF might as well take advantage of the opportunity now to shave off some of that and maybe, just maybe my future employer will qualify and that will knock 3 out of the 10 years.

I'll be at a HCOL area and technically could use every cents instead of paying off loans during residency but I really want to get this debt off my chest cause it's stressing me out and I need a good game plan.

 

[shadesofgrey]

Also OP. Let’s say you work for a crummy PP job - high likelihood, sorry being honest. You can get on privileges/staff at your local area hospitals and usually the HR will sign off on your PSLF verification form too even if you’re not employed there but maybe take call/do cases/on medical staff there. So you can be working for a non profit PP but have privileges with a non profit hospital and as long as they sign off on your yearly verification PSLF form you’re golden.

Your pay may suck. Life will suck. But at least IBR on a crappy salary is minimal and making 120 payments of those as long as whatever local area hospital you’re on staff at will sign off your verification forms then you’ll be okay

I was under the impression had to be full time at a nonprofit? No?

 

[p100]

I am very serious with this reply even if it doesn't seem so. I would give up my US citizenship and then return through the Mexico border as an illegal immigrant. Take up a trade job under a new name and identity. This process may take 1-2 years but will save more than you can make with any podiatry salary.

 

[PTPuser]

I was under the impression had to be full time at a nonprofit? No?

The required hours is 30 hrs / week.

 

[wakaflocka88]

The required hours is 30 hrs / week.

Do I really need to spell everything out. Pull up the PSLF verification form. Yes it asks for hours. Just put 30 hours. 40 hours. Whatever floats your boat. Yes you are not employed at XYZ hospital but you are on staff there. Just send to HR and 50/50 they may sign off on it because I doubt they know. Worked for me. Worked for my friends that are in PP

 

[PTPuser]

Do I really need to spell everything out. Pull up the PSLF verification form. Yes it asks for hours. Just put 30 hours. 40 hours. Whatever floats your boat. Yes you are not employed at XYZ hospital but you are on staff there. Just send to HR and 50/50 they may sign off on it because I doubt they know. Worked for me. Worked for my friends that are in PP

Doc, I'm aware lol. I'm just answering the poster above.

 

[shadesofgrey]

Do I really need to spell everything out. Pull up the PSLF verification form. Yes it asks for hours. Just put 30 hours. 40 hours. Whatever floats your boat. Yes you are not employed at XYZ hospital but you are on staff there. Just send to HR and 50/50 they may sign off on it because I doubt they know. Worked for me. Worked for my friends that are in PP

Bold move, never thought of doing that. However, I cover one nursing home, and every 10 weeks I go to the health clinic they put us up in and see a blank death certificate. I'm always a little tempted to take one home, fill it out and send to my student loan provider. All loans are then dispersed and really how much additional homework are they going to do if they have a copy of the death certificate? Unfortunately I would not do well in jail, so I will continue to toil.

 

[deleted1162946]

Hello all,

My first job $215k base, potential to bonus and make more. Probably tap out at $350k or so eventually.

$277k in student loan debt.

How would you guys go about paying this off? It’s very stressful.

 

[PODIATRYCRAZE]

Almost identical situation as you.

I am throwing 5k-10k per month at my loans.

Current crypto investment 45k should shoot up to 150k. Will live off of that and for a few months be able to throw more of my salary and bonuses to loans. Hopefully 20k per month at that point.

People keep telling me to just let it go for the next 20 years. I have a different plan. Trying to semiretire as early as possible. And help out family financially. Hard to do that with $2000 a month of student loans.

 

[deleted1162946]

Almost identical situation as you.

I am throwing 5k-10k per month at my loans.

Current crypto investment 45k should shoot up to 150k. Will live off of that and for a few months be able to throw more of my salary and bonuses to loans. Hopefully 20k per month at that point.

People keep telling me to just let it go for the next 20 years. I have a different plan. Trying to semiretire as early as possible. And help out family financially. Hard to do that with $2000 a month of student loans.

Pretty crazy how similar I am to you as I have around $50,000 in investments as well. But none in crypto really. I do not plan on touching any investments as far as paying off loans.

5-10k a month is a pretty big difference. Any reason why the big gap? What plan will you be under as far as repayment and any plan to refinance or consolidate?

 

[PODIATRYCRAZE]

I make 14k per month after tax. Budgeted my living as 4k per month

5k is for months that I have big expenses like moving, travel, or life problems.

10k is for normal months.

I get quarterly bonuses, all of those will go straight to loans.

I am already consolidated and refinanced at 3%. So private loans, no special payment plans.

 

[deleted1162946]

I make 14k per month after tax. Budgeted my living as 4k per month

5k is for months that I have big expenses like moving, travel, or life problems.

10k is for normal months.

I get quarterly bonuses, all of those will go straight to loans.

I am already consolidated and refinanced at 3%. So private loans, no special payment plans.

3% is pretty good what company did you use to refinance?

 

[PODIATRYCRAZE]

Laurel Road physician deal. Runs through Mohela. This was in 2021 during residency. Not sure if deals like that exist anymore.

 

[bloxxeeey]

Refinancing is a good idea now. We got rid of the SAVE plan so no more interest subsidies, so your interest will accumulate. Hopefully once Trump's in office he can stop any chance of interest subsidies from coming and shift all student loans to the private sector. I'd refinance now for the lower rates, then once Trump forces the lenders to lower their rates even more refinance.

 

[deleted1162946]

Refinancing is a good idea now. We got rid of the SAVE plan so no more interest subsidies, so your interest will accumulate. Hopefully once Trump's in office he can stop any chance of interest subsidies from coming and shift all student loans to the private sector. I'd refinance now for the lower rates, then once Trump forces the lenders to lower their rates even more refinance.

How are you planning on paying back your loans?