Contract Question - Job offering to pay student loans but is also non profit and I’m 7/10 yrs PSLF

[Lem0nz]

Hi friends,

Did a job interview from last week that was very different from some of my others and has a unique situation. The company is a non profit and I’m 7/10 years towards PSLF, but they’re also willing to pay for student loans up front as part of the contract (either through modifying salary or sign on bonus, they said after LOI this would be figured out).

I’m mostly interested in advice and opinions on the finances of it. Do people think it would be better to get rid of the uncertainty and give up some sign on money or salary and be done with it? Or ask them to not pay anything for loans and put that towards a higher salary or sign on bonus and pocket/invest, then go for PSLF?

Seems nigh impossible (but nothing is impossible) that the new administration would cancel or change PSLF for the worse, and I’ve done my homework and made sure I meet other requirements. And I my understanding is the money forgiven specifically for PSLF is not taxed as income so there’s no giant tax Bill. Seems like very little downside other than the money I’d be paying towards the loans for the next 3 years at an attending salary, but that also isn’t insignificant.

Anyway, appreciate any and all advice. This question was a little more nuanced so hoping others who are older would have some wisdom.

edit: loan amount is 220k, outstanding interest another 20k. Salary probably going to be 450 or higher.

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[abolt18]

Hi friends,

Did a job interview from last week that was very different from some of my others and has a unique situation. The company is a non profit and I’m 7/10 years towards PSLF, but they’re also willing to pay for student loans up front as part of the contract (either through modifying salary or sign on bonus, they said after LOI this would be figured out).

I’m mostly interested in advice and opinions on the finances of it. Do people think it would be better to get rid of the uncertainty and give up some sign on money or salary and be done with it? Or ask them to not pay anything for loans and put that towards a higher salary or sign on bonus and pocket/invest, then go for PSLF?

Seems nigh impossible (but nothing is impossible) that the new administration would cancel or change PSLF for the worse, and I’ve done my homework and made sure I meet other requirements. And I my understanding is the money forgiven specifically for PSLF is not taxed as income so there’s no giant tax Bill. Seems like very little downside other than the money I’d be paying towards the loans for the next 3 years at an attending salary, but that also isn’t insignificant.

Anyway, appreciate any and all advice. This question was a little more nuanced so hoping others who are older would have some wisdom.

edit: loan amount is 220k, outstanding interest another 20k. Salary probably going to be 450 or higher.

Makes no sense IMO to have the hospital pay your loans. Just take the larger salary or sign-on bonus. Ride that PSLF if you can!

By the time I'm done, I'll be 6/10 years completed. Trying to decide if it's worth it to pursue a job that would qualify for PSLF or not with my $400K in loans. The issue being that those jobs usually pay $100-200K less than the ones I'm looking at that wouldn't qualify for PSLF.

 

[RangerBob]

If you’re going to be eligible for PSLF, your employer paying for your loans will actually cost you more money, because you’ll have to report that as income. Which costs you more if all your loans are going to be forgiven tax-free anyway. Negotiate a higher salary.