Which hospitals are considered non-profits (501 3(c)) for loan forgiveness purposes?

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Mar 16, 2019
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Can anyone comment on what proportion of hospitals are considered non-profits (501 3c) for purposes of loan forgiveness and which hospitals they usually are? I'm trying to gauge how hard it is to find a residency and later attending role in a non-profit hospital to take advantage of the loan forgiveness program. I assume the VAs are clearly included....I'm not sure however whether the rest of hospitals are mostly non-profit or for -profit.

Thanks for any input!

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It very often doesn’t matter what the hospital is.

Most residents are employed by the medical center (if there is one), of which most are for profit. At community programs, they could very well be hired by the hospital or physicians foundationroups.

Most attendings are employed by a physicians foundation/group—which are very often for profit.

At my med school residents were hired by the medical center—nonprofit. Attendings we’re hired by the foundation-for profit, and thus not eligible for PSLF.

VA attendings are obviously typically employed by gov’t agency and eligible, but some may actually be hired by a physicians foundation for the associated medical center to provide coverage to both hospitals.

Long story short, it’s really hard to tell, and even if you ask each individual hospital/program, the person you ask usually doesn’t understand PSLF and whether you’d truly be eligible. Best thing is to ask HR and pinpoint exactly who is signing who’s paycheck. Or ask a current resident/attending if you can look at their paycheck!!!

Short answer is most residency programs are PSLF-eligible. And more attending jobs at non-profit centers than you would think are not eligible.
Most residents at academic programs will be employed by either the state, the medical school (mostly non-profit,) or the hospital (mostly 501c3 non-profit,) and thus most residents qualify for PSLF. There are also community programs at non-profit hospitals where the residents are direct employed by the hospital, and they also would qualify. I know this because I got credit for my residency and have networked with many physicians in many programs who also got credit for theirs.

There are many 501c3 hospitals and it is possible to be a direct employee of such a hospital. I was one and got PSLF recently. However, in many cases, physicians who work at these hospitals are actually employed by a for profit physician group, which will not qualify. The EIN on your paycheck has to correspond to a government or nonprofit organization.

Working as an attending at most academic institutions and all governmental institutions will qualify.

I've heard a million times in the last ~12 years how I won't get PSLF, it doesn't work, its going to be taken away, etc etc etc. But I just had $470k discharged official today and it really wasn't that hard to arrange, with a little self education re the program and some careful choices about my training and post residency work.
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