Health Systems offering Loan Repayment

[Relentlessrook18]

May not be the correct terminology, but I'm interested in finding out if any specific health systems give a loan repayment or loan forgivness as a bonus for signing on to work with them for several years?

I'm not really interested in PSLF because I'm afraid it's going to be gone within the next 10 years. I don't really want to do NHSC because I feel like you have less control over where you want to end up.

What all do you guys and gals think?
Thanks!

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[Hakuna Matata]

Not sure exactly what you're referring to- but I've talked with several residents who signed contracts with hospitals following residency and got up to $200k towards loan repayment.

Side note- I fear the PSLF will be gone in 10 years, as well.


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[FrustratedFamDoc]

The thing with any sort of signing bonus that is advertised as "loan repayment" is that it is taxed. You receive usually less than 70% of the promised amount. Furthermore, most contracts will have some sort of repayment clause for early termination of the contract paying back the GROSS (pre-tax) disbursement. Be very careful signing away several years of your future right out of residency. Usually there is a reason why some bonus offers seem too good to be true.

 

[JonMonkey]

The first group completing their 10 year programs will be this Oct, I hope that the government follows through. I am currently in year 5.

 

[VA Hopeful Dr]

The thing with any sort of signing bonus that is advertised as "loan repayment" is that it is taxed. You receive usually less than 70% of the promised amount. Furthermore, most contracts will have some sort of repayment clause for early termination of the contract paying back the GROSS (pre-tax) disbursement. Be very careful signing away several years of your future right out of residency. Usually there is a reason why some bonus offers seem too good to be true.

Yeah, not completely true. If they give you the money to pay the loans, that gets taxed as income on both sides. However, most places will make a payment to your loan for you - then no one has to pay payroll/income taxes on it.

 

[Relentlessrook18]

Yeah, not completely true. If they give you the money to pay the loans, that gets taxed as income on both sides. However, most places will make a payment to your loan for you - then no one has to pay payroll/income taxes on it.

Do many of these places that offer repayment or forgiveness pay the loans back directly for you?

And thank you all for your replies!

 

[VA Hopeful Dr]

Do many of these places that offer repayment or forgiveness pay the loans back directly for you?

And thank you all for your replies!

Not sure, I can only speak to my wife's current job which paid the amount directly to my wife's loan.

 

[cabinbuilder]

I can give you my personal experience:

Moved to Montana with promise of loan repayment. Found out later you had to "apply" to the state, never saw a dime.
Move to Colorado, also had promise of loan repayment. "We have 3 different programs". Found out later you had to "apply" to the state, never saw a dime.
I applied to NHSC 2 years in a row and was rejected due to lack of funding.
Worked in Tillamook, OR as locum. Was offered a permanent position with promise of loan repayment. $25,000/yr gets paid directly to your student loans. Family Practice/PA providers there had their overall pay "adjusted" to incorporate the student loan repayment so in the end it wasn't extra and they told me they were struggling to pay all their other bills too.

I gave up a long time ago on the student loan thing. My loans are at 2% since I consolidated and I make enough money to cover the payments @ $1150/month for the 3 different loans.

Good luck in your search.

 

[Relentlessrook18]

I can give you my personal experience:

Moved to Montana with promise of loan repayment. Found out later you had to "apply" to the state, never saw a dime.
Move to Colorado, also had promise of loan repayment. "We have 3 different programs". Found out later you had to "apply" to the state, never saw a dime.
I applied to NHSC 2 years in a row and was rejected due to lack of funding.
Worked in Tillamook, OR as locum. Was offered a permanent position with promise of loan repayment. $25,000/yr gets paid directly to your student loans. Family Practice/PA providers there had their overall pay "adjusted" to incorporate the student loan repayment so in the end it wasn't extra and they told me they were struggling to pay all their other bills too.

I gave up a long time ago on the student loan thing. My loans are at 2% since I consolidated and I make enough money to cover the payments @ $1150/month for the 3 different loans.

Good luck in your search.

Thanks for the info. I'm just wondering how on Earth primary care docs from DO schools pay for their education? I know 180 to 200k is much more than the typical family makes, but man! I want to pay my loans back quickly! I don't need a sports car, big house, Imax theatre tv. I just want peace of mind after getting the loans paid quickly. Haha.

 

[cabinbuilder]

Thanks for the info. I'm just wondering how on Earth primary care docs from DO schools pay for their education? I know 180 to 200k is much more than the typical family makes, but man! I want to pay my loans back quickly! I don't need a sports car, big house, Imax theatre tv. I just want peace of mind after getting the loans paid quickly. Haha.

It all comes down to what total bills you have. For me I have divorce debt, alimony, house payment, car payment, kids in college, insurance, etc. etc. etc. My student loans are low interest so have been in the back burner all this time. I work urgent care and clear 300K but with taxes/insurance that's 100K gone before I ever see it. My divorce debt and college for kids is another 100K/yr so that leaves 100K that I have left to pay everything else. It doesn't go very far.

 

[Hakuna Matata]

Thanks for the info. I'm just wondering how on Earth primary care docs from DO schools pay for their education? I know 180 to 200k is much more than the typical family makes, but man! I want to pay my loans back quickly! I don't need a sports car, big house, Imax theatre tv. I just want peace of mind after getting the loans paid quickly. Haha.

$180-200k? Are you referring to loans? Try $300-400k at 7%. In debt for life, yo.


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[Relentlessrook18]

$180-200k? Are you referring to loans? Try $300-400k at 7%. In debt for life, yo.


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Referring to salary. My loans at the end of 4th year are thankfully at $270k. It's not good, but it could always be a lot worse.

 

[cabinbuilder]

$180-200k? Are you referring to loans? Try $300-400k at 7%. In debt for life, yo.


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My loans after graduating in 2006 were 220K

 

[JonMonkey]

Thanks for the info. I'm just wondering how on Earth primary care docs from DO schools pay for their education? I know 180 to 200k is much more than the typical family makes, but man! I want to pay my loans back quickly! I don't need a sports car, big house, Imax theatre tv. I just want peace of mind after getting the loans paid quickly. Haha.

Forget DO...have you ever seen the loan debt a caribbean grad carries? $550k last I checked, fingers crossed the government does screw me on this IBR program.

 

[Doctorsoon2011]

Little value to the OP but I personally joined an accelerated Family Medicine Program in Texas. It cuts off a year of medical school, pays another year in scholarship, and I was able to save up with a prior career to pay for another year. That, along with Texas having very low medical school tuition, gets me out of med school under 15k (under 30k without my savings). That is how paying off loans is possible for me.

 

[cabinbuilder]

Little value to the OP but I personally joined an accelerated Family Medicine Program in Texas. It cuts off a year of medical school, pays another year in scholarship, and I was able to save up with a prior career to pay for another year. That, along with Texas having very low medical school tuition, gets me out of med school under 15k (under 30k without my savings). That is how paying off loans is possible for me.

Heck, you could pay that off in 3 months if your other bills are low.

 

[Doctorsoon2011]

I keep other bills pretty low. I plan to have it gone by the end of my residency. Either way, I am a strong believer in a "Dave Ramsey" approach to debt. Live a ridiculously frugal life and hit the debt head on for 1-2 year and be done with it. That would be my game plan with any other debt load. Secondly, learn about money and how to handle it. I have followed WhiteCoatInvestor and Physician On Fire blogs for years and could not recommend them enough. As physicians we are very smart people and there is no reason we should not be our own financial advisors. Educate yourself, no one will look after your money like yourself... no one!

 

[FamilymedMD]

I'm following this with interest as independent Direct Primary Care docs like me are starting to compete with hospital clinics and FQHCs/RHCs for newly graduating primary care physicians. I believe we can't participate in any government loan programs since most of us don't bill Medicare nor Medicaid but it sounds like most repayment offers are simply more taxable income, correct? DPCs can do that as we build up our patient panels.

 

[Mad Jack]

I keep other bills pretty low. I plan to have it gone by the end of my residency. Either way, I am a strong believer in a "Dave Ramsey" approach to debt. Live a ridiculously frugal life and hit the debt head on for 1-2 year and be done with it. That would be my game plan with any other debt load. Secondly, learn about money and how to handle it. I have followed WhiteCoatInvestor and Physician On Fire blogs for years and could not recommend them enough. As physicians we are very smart people and there is no reason we should not be our own financial advisors. Educate yourself, no one will look after your money like yourself... no one!

Even hitting my debt as hard as possible, it'll likely take me four years to address it. Taxes are insane.