Physician's Guide to Public Service Loan Forgiveness (PSLF)
Most of my physician clients prefer it when I get right to the point. Quite frankly, they don't care for all the fluff and expect a short, concise explanation. After all, they are busy people so time is of the essence. With that in mind, I created a 5-page powerpoint style guide that explains how Public Service Loan Forgiveness (PSLF) works, outlined the 5 step process so that your loans qualify for Federal debt cancelation, and what to avoid so you aren't hit with any unpleasant surprises. As a bonus, I added a slide that points you to other helpful resources.
Before going any further, I highly suggest checking out a related post, titled, Student Debt Repayment Guide. My other guide details all the various repayment plans, which is a crucial element to maximizing your savings from a program like PSLF. In addition, you will better understand some of the concepts within this guide. However, in the event you need additional help putting it all together, don't hesitate to contact me (Scott) with your questions and I will respond to your inquiry within 24-48 hours.
The tax-free forgiveness is huge. Otherwise, private sector physicians who get debt forgiveness are looking at a ticking "tax bomb" that could cost them anywhere between $25,000 - $100,000.
It is especially important to evaluate your debt savings vs. compensation offers before you become an attending and agree to sign the dotted line. Doing so gives you negotiating power and either maximizes your gross income and bonuses or reduces your overall debt burden.
There are no shortcuts. Every step must be followed as you see it spelled out above. Skipping steps could disqualify your loans from PSLF or set you back many months or years until the debt is written-off.
The worst offenders are not consolidating FFEL loans and repaying loans under the Extended and Graduated plans. Not too far behind is failing to change the loan status to repayment. Any payments made while the loan is classified under a forbearance or grace status do not qualify.
My favorite calculator for projecting the total cost is the VIN SImulator. Heather Jarvis is a great resource for the DIY types. AAMC has an extensive PDF guide that you can download.
If you are interested in student loan help, visit our website's college resources: