Loan repayment while working in public health

[Pre-Dent Jeff]

I'm considering going into public health after school, such as IHS or FQHC. How do the loan repayment options work?
-Do I still need to pay at least the minimum payments while the government pays its portion?
-Any recommendations with financial advisors to talk to?

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[Vicviper]

I did a program with the NHSC after dental school, I agreed to work in public health for 2 years, and they dropped 50k (tax free) into my bank account, and at the end of two years (or when applying for a continuation contract) you have to show that you used that money for your loans. I think most people usually make a lump sum payment to pay down your highest interest rate or lowest balance loans, and then save enough to use the remainder as their monthly payment for the rest of the two years.

Yes, you still actually pay your loans in my case. There are other programs that you apply for prior to starting dental school, or while you are still in dental school that can give you better deals. Sorry, no good advice on financial advisors, but I probably should get one, haha.

 

[Pre-Dent Jeff]

I did a program with the NHSC after dental school, I agreed to work in public health for 2 years, and they dropped 50k (tax free) into my bank account, and at the end of two years (or when applying for a continuation contract) you have to show that you used that money for your loans. I think most people usually make a lump sum payment to pay down your highest interest rate or lowest balance loans, and then save enough to use the remainder as their monthly payment for the rest of the two years.

Yes, you still actually pay your loans in my case. There are other programs that you apply for prior to starting dental school, or while you are still in dental school that can give you better deals. Sorry, no good advice on financial advisors, but I probably should get one, haha.

Thanks for the info!!

 

[Apolo106]

Hi all,

I am currently working at a FQHC, has anyone successfully completed the PLSF program with the 120 payments while working at a non profit organization such as FQHC or IHS? thank you.

 

[Biofilm preventer]

I'm considering going into public health after school, such as IHS or FQHC. How do the loan repayment options work?
-Do I still need to pay at least the minimum payments while the government pays its portion?
-Any recommendations with financial advisors to talk to?

wait, if you work for FQHC, they help pay your loans? is the salary alot less than not working for FQHQ? whats the catch of working for FQHC?

 

[Blueshirts]

I did a program with the NHSC after dental school, I agreed to work in public health for 2 years, and they dropped 50k (tax free) into my bank account, and at the end of two years (or when applying for a continuation contract) you have to show that you used that money for your loans. I think most people usually make a lump sum payment to pay down your highest interest rate or lowest balance loans, and then save enough to use the remainder as their monthly payment for the rest of the two years.

Yes, you still actually pay your loans in my case. There are other programs that you apply for prior to starting dental school, or while you are still in dental school that can give you better deals. Sorry, no good advice on financial advisors, but I probably should get one, haha.

When did they disburse the money, after each completed working year?

 

[pubhealthdent]

I'm considering going into public health after school, such as IHS or FQHC. How do the loan repayment options work?
-Do I still need to pay at least the minimum payments while the government pays its portion?
-Any recommendations with financial advisors to talk to?

As stated above, they typically give you the lump sum amount at one point each year and then have to provide proof that you used it for your loans. I am going the PSLF route, so I use the money to pay my monthly payments and then on the last month of that contract year I pay the rest in one payment - but this gets a bit tricky because it can put you on "paid ahead" status which can mess with your payment count for PSLF if you're not careful.

 

[Blueshirts]

As stated above, they typically give you the lump sum amount at one point each year and then have to provide proof that you used it for your loans. I am going the PSLF route, so I use the money to pay my monthly payments and then on the last month of that contract year I pay the rest in one payment - but this gets a bit tricky because it can put you on "paid ahead" status which can mess with your payment count for PSLF if you're not careful.

I have a question, specific to the loan repayment for Wisconsin. Based on available online information for the HPLAC, the max loan repayment is 50k, for a 3 year obligation; would that mean that the repayment would look something like 20k for year 1, 20k for year 2, 10k for year 3?

 

[dentim07]

As stated above, they typically give you the lump sum amount at one point each year and then have to provide proof that you used it for your loans. I am going the PSLF route, so I use the money to pay my monthly payments and then on the last month of that contract year I pay the rest in one payment - but this gets a bit tricky because it can put you on "paid ahead" status which can mess with your payment count for PSLF if you're not careful.

I understand that you receive a lump sum (50k?) in exchange for working for x amount of time (2 years?) but do you also get paid while working for them? I would assume that 50k is nowhere near enough compensation for going this route. I apologize for such an elementary question but I for the life of me cannot find anything about this while researching IHS

 

[pubhealthdent]

I have a question, specific to the loan repayment for Wisconsin. Based on available online information for the HPLAC, the max loan repayment is 50k, for a 3 year obligation; would that mean that the repayment would look something like 20k for year 1, 20k for year 2, 10k for year 3?

So its "up to $50k," which is important to keep in mind. Ive heard of people receiving less- they base it off amount of funding available, number of applicants, etc. But yes mine was 20, 20, 10

 

[pubhealthdent]

I understand that you receive a lump sum (50k?) in exchange for working for x amount of time (2 years?) but do you also get paid while working for them? I would assume that 50k is nowhere near enough compensation for going this route. I apologize for such an elementary question but I for the life me cannot find anything about this while researching IHS

The loan forgiveness has nothing to do with compensation. So I receive a salary through my work, and then also receive the loan repayment from the state.

 

[dentim07]

The loan forgiveness has nothing to do with compensation. So I receive a salary through my work, and then also receive the loan repayment from the state.

Thank you so much for the clarification. How easy/competitive is it to find a 501(c)3 job after dental school? Also what led you to go with the PSLF route as opposed to REPAYE or refinancing?

 

[pubhealthdent]

Thank you so much for the clarification. How easy/competitive is it to find a 501(c)3 job after dental school? Also what led you to go with the PSLF route as opposed to REPAYE or refinancing?

Ease of finding jobs in public health depends on where you're willing to live. I didnt have a preference on where I wanted to live after school so I had around 15 offers. Generally speaking urban areas would be more difficult as theirs typically more competition for these jobs.

I went the PSLF route because I knew I'd be able to stick it out for 10 years. So if the govt is willing to foot the bill for my loans, why wouldn't I take them up on that offer?

 

[Apolo106]

Ease of finding jobs in public health depends on where you're willing to live. I didnt have a preference on where I wanted to live after school so I had around 15 offers. Generally speaking urban areas would be more difficult as theirs typically more competition for these jobs.

I went the PSLF route because I knew I'd be able to stick it out for 10 years. So if the govt is willing to foot the bill for my loans, why wouldn't I take them up on that offer?

Good point. Attached is the PLSF job verification form, you need to submit it yearly to track the 120 payments. Have your employer (nonprofit) fill it out.

https://studentaid.gov/sites/default/files/public-service-employment-certification-form.pdf

 

[cyro8]

Keep in mind the PSLF has a 1% success rate.
Also,
If you do qualify for PSLF, you're on the hook as it is counted as income. Say you had a $200k balance and it is forgiven, then that will count as an additional $200k in wages for the year and you will owe taxes on those wages.

Education Department explains why only 1% of people who applied for public-loan forgiveness were accepted

The Public Service Loan Forgiveness Program is designed to wipe away student-loan debt for people who work in public-service jobs.

www.marketwatch.com

As for the other options (NHSC, IHS, etc).

NHSC is a tax free loan repayment option where you can work two years in an underserved area (based on HPSA score) where they will pay you 50k tax free up front in exchange for those two years. This is not counted as income and you would continue to make your current salary regardless if you took the loan repayment or not. If you qualify for the full $50k, it's usually because you're in one of the more underserved areas. The HPSA scale ranges from 0-26 with 26 being the most underserved. My spouse works in an area that has a score of 20. I heard through the IHS clinical director last year that the amount starts to dwindle in areas with a score less than 16.

IHS loan repayment is a taxable option. They will pay you $20k per year towards your loans, but the money is taxed. The good thing, however, is that they'll give you an additional $5k on top of the $20k to offset the taxes. This is a two year obligation and they payout at the end of the year in $20k allotments.

Source: My spouse works for IHS and has received the NHSC loan repayment option. We know the in's and out's of the system if you guys have any questions.

Also, I can provide you salary details for IHS if you need them (physicians, dentists, nurses, optometrists, etc)

 

[pubhealthdent]

Keep in mind the PSLF has a 1% success rate.
Also,
If you do qualify for PSLF, you're on the hook as it is counted as income. Say you had a $200k balance and it is forgiven, then that will count as an additional $200k in wages for the year and you will owe taxes on those wages.

1% success rate because people don't understand the rules. Most common reason for denial:

• Ineligible loans (most loans pre-2007 when program began were not direct loans which are the only loans that qualify) - fortunately most loans post-2007 qualify
• Insufficient payments: a lot of peolle think you apply before you start making qualifying payments which is false, you apply at the end
• Incomplete application: pretty self-explanatory

It was so confusing at first that they even created the TEPSLF (temporary expanded PSLF) to allow some to qualify who didn't qualify for regular PSLF due to several reasons.

Also, loans forgiven under PSLF are NOT taxable. Under normal IBR forgivenss (20 or 25 years depending on the repayment plan) the portion forgiven is taxed, but that is not the same for PSLF. With PSLF, the slate is simply wiped clean.

Why the PSLF Success Rate Will Hit Over 50% by 2024

Only 864 people out of over 73,000 have been approved for PSLF through mid 2019. Here's why the PSLF success rate will exponentially explode.

www.studentloanplanner.com

Everyone Calm Down About Rejected Student Loan Forgiveness Applications

Most Public Service Loan Forgiveness applicants have seen their applications rejected. But that's not nearly the scandal it appears.

www.forbes.com

Denied For Public Service Loan Forgiveness? Here’s Why

Only a miniscule fraction of forgiveness applicants have made a sufficient number of qualifying payments.

www.forbes.com

 

[cyro8]

I s

1% success rate because people don't understand the rules. Most common reason for denial:

• Ineligible loans (most loans pre-2007 when program began were not direct loans which are the only loans that qualify) - fortunately most loans post-2007 qualify
• Insufficient payments: a lot of peolle think you apply before you start making qualifying payments which is false, you apply at the end
• Incomplete application: pretty self-explanatory

It was so confusing at first that they even created the TEPSLF (temporary expanded PSLF) to allow some to qualify who didn't qualify for regular PSLF due to several reasons.

Also, loans forgiven under PSLF are NOT taxable. Under normal IBR forgivenss (20 or 25 years depending on the repayment plan) the portion forgiven is taxed, but that is not the same for PSLF. With PSLF, the slate is simply wiped clean.

Why the PSLF Success Rate Will Hit Over 50% by 2024

Only 864 people out of over 73,000 have been approved for PSLF through mid 2019. Here's why the PSLF success rate will exponentially explode.

www.studentloanplanner.com

Everyone Calm Down About Rejected Student Loan Forgiveness Applications

Most Public Service Loan Forgiveness applicants have seen their applications rejected. But that's not nearly the scandal it appears.

www.forbes.com

Denied For Public Service Loan Forgiveness? Here’s Why

Only a miniscule fraction of forgiveness applicants have made a sufficient number of qualifying payments.

www.forbes.com

i stand corrected on PSLF being taxable. Thanks for pointing that out.

https://studentaid.gov/help-center/answers/article/loan-amounts-forgiven-under-pslf-taxable/

 

[Soleus715]

1% success rate because people don't understand the rules. Most common reason for denial:

• Ineligible loans (most loans pre-2007 when program began were not direct loans which are the only loans that qualify) - fortunately most loans post-2007 qualify
• Insufficient payments: a lot of peolle think you apply before you start making qualifying payments which is false, you apply at the end
• Incomplete application: pretty self-explanatory

It was so confusing at first that they even created the TEPSLF (temporary expanded PSLF) to allow some to qualify who didn't qualify for regular PSLF due to several reasons.

Also, loans forgiven under PSLF are NOT taxable. Under normal IBR forgivenss (20 or 25 years depending on the repayment plan) the portion forgiven is taxed, but that is not the same for PSLF. With PSLF, the slate is simply wiped clean.

Why the PSLF Success Rate Will Hit Over 50% by 2024

Only 864 people out of over 73,000 have been approved for PSLF through mid 2019. Here's why the PSLF success rate will exponentially explode.

www.studentloanplanner.com

Everyone Calm Down About Rejected Student Loan Forgiveness Applications

Most Public Service Loan Forgiveness applicants have seen their applications rejected. But that's not nearly the scandal it appears.

www.forbes.com

Denied For Public Service Loan Forgiveness? Here’s Why

Only a miniscule fraction of forgiveness applicants have made a sufficient number of qualifying payments.

www.forbes.com

99% of PSLF applicants not following rules is tough to believe. This year, 1.8% of PSLF applicants were forgiven of their loans. No program should be THAT hard to follow. I guess dentists who based 10 years of their lives around PSLF have financial IQ of a rock or they got screwed hard.

 

[pubhealthdent]

99% of PSLF applicants not following rules is tough to believe. This year, 1.8% of PSLF applicants were forgiven of their loans. No program should be THAT hard to follow. I guess dentists who based 10 years of their lives around PSLF have financial IQ of a rock or they got screwed hard.

Its not hard to follow... if you follow the rules. I personally know of 9 people (MD×2, JD×2, teacher×1, nurse×3, PA×1). You can call me dumb all you want but, doesnt change the fact that i'll have saved close to half a million when mine are forgiven ‍♂️

 

[Soleus715]

Its not hard to follow... if you follow the rules. I personally know of 9 people (MD×2, JD×2, teacher×1, nurse×3, PA×1). You can call me dumb all you want but, doesnt change the fact that i'll have saved close to half a million when mine are forgiven ‍♂

Oh no, I didn't mean to label you at all, didn't even know you're doing PSLF. I'm just talkin about the ~98%+ that get rejected. They are forced to fall back on IBR now with all the interest compounded if they made only minimum payments. Just still stunned with how many don't know how to follow the guidelines or if they had a financial advisor that also didn't put them on the right track for 10 years. If it was like 50%, maybe I'd have an easier time believing it.

 

[pubhealthdent]

Oh no, I didn't mean to label you at all, didn't even know you're doing PSLF. I'm just talkin about the ~98%+ that get rejected. They are forced to fall back on IBR now with all the interest compounded if they made only minimum payments. Just still stunned with how many don't know how to follow the guidelines or if they had a financial advisor that also didn't put them on the right track for 10 years. If it was like 50%, maybe I'd have an easier time believing it.

It will go up, the percentage is already going up from what it was 3 years ago when the first group became eligible, albeit slowly. There's just unfortunately a lot of misinformation out there. But I would think most health professionals are smart enough and realize how much is on the line to make sure every i is dotted and t is crossed

 

[MavsFanForLife]

I s

i stand corrected on PSLF being taxable. Thanks for pointing that out.

https://studentaid.gov/help-center/answers/article/loan-amounts-forgiven-under-pslf-taxable/

I understand making a mistake.....But why speak on something you dont know anything about? Its misinformation from uninformed people like this post that is frustrating on SDN. Anyone who did two seconds of research on PSLF knows its not taxable

 

[cyro8]

I understand making a mistake.....But why speak on something you dont know anything about? Its misinformation from uninformed people like this post that is frustrating on SDN. Anyone who did two seconds of research on PSLF knows its not taxable

It was a mistake and I owned up to it. I could’ve been thinking of a different forgiveness program and misconstrued the two, but thanks for being infallible.