PSLFers - how much do you stand to save?

[Igor4sugry]

For those who are doing PSLF (and hoping the program stays around), how much do you stand to save by staying in the program?
a) loan balance?
b) # of residency years counting towards PSLF?
c) amount you will have paid out by end of 120 payments while in PSLF?
d) Total cost if you entered 10yr repayment plan?

for me 3 out of 4 residency years counted towards PSLF. Loan balance at end of residency is $219k. Fedloans sent statement that on Jan 2024 loans should be eligible for forgiveness.
The 120 payments will total $228k.
If I did 10yr repayment plan after residency, I would have paid $295k (so savings of $67k and loans paid off 3yrs sooner).

--PSLF helps account for the unreasonably high interest rates.

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[Siggy]

For those who are doing PSLF (and hoping the program stays around), how much do you stand to save by staying in the program?
a) loan balance?
b) # of residency years counting towards PSLF?
c) amount you will have paid out by end of 120 payments while in PSLF?
d) Total cost if you entered 10yr repayment plan?

for me 3 out of 4 residency years counted towards PSLF. Loan balance at end of residency is $219k. Fedloans sent statement that on Jan 2024 loans should be eligible for forgiveness.
The 120 payments will total $228k.
If I did 10yr repayment plan after residency, I would have paid $295k (so savings of $67k and loans paid off 3yrs sooner).

--PSLF helps account for the unreasonably high interest rates.

Here's the catch, what would the total cost have been if you paid it off at 5 years instead of the full 10? It's not prudent to assume that if PSLF wasn't there, that you would go the entire 10 years.

 

[SXMMD]

Other things to consider: retroactive denial of your eligibility. See links below.

https://www.americanbar.org/news/abanews/aba-news-archives/2016/12/aba_files_lawsuitag.html
In answer to ABA lawsuit, Education Department says it never changed loan forgiveness rules


P.S.
Not saying one should not take advantage of PSLF, just recommending that it be kept in mind that 10 years is a lot of time for politicians to come in and change the legislation. Thus it may be prudent not to rely 100% on the program

 

[Raryn]

Other things to consider: retroactive denial of your eligibility. See links below.

https://www.americanbar.org/news/abanews/aba-news-archives/2016/12/aba_files_lawsuitag.html
In answer to ABA lawsuit, Education Department says it never changed loan forgiveness rules


P.S.
Not saying one should not take advantage of PSLF, just recommending that it be kept in mind that 10 years is a lot of time for politicians to come in and change the legislation. Thus it may be prudent not to rely 100% on the program

This doesn't apply to 99% of people.

PSLF applies to those who work for a 501(c)(3), a government agency, an indian tribe, or a few "other" employers in public service. The first three criteria are crystal clear and the third is the only one in doubt: The ABA and the other organizations of interest are neither 501(c)(3)s, indian tribes, nor government agencies. They have other legal designations but their employees are trying to qualify for PSLF anyway due to the argument they are also in public service. The DOE initially said "sure" and now is saying "maybe not". It's a ****ty argument, but assuming you're working directly for a 501(c)(3) or the government (which most residents will be), it has zero effect on you.

 

[shoal007]

i ran the numbers. 240k debt coming out of residency (3 yrs) at 6.8%. pay it all off at the 10yr rate~ 360k, 5 yr refi 300k, pslf 240k.


i was in ibr during residency
Sent from my Pixel using Tapatalk

 

[SXMMD]

This doesn't apply to 99% of people.

PSLF applies to those who work for a 501(c)(3), a government agency, an indian tribe, or a few "other" employers in public service. The first three criteria are crystal clear and the third is the only one in doubt: The ABA and the other organizations of interest are neither 501(c)(3)s, indian tribes, nor government agencies. They have other legal designations but their employees are trying to qualify for PSLF anyway due to the argument they are also in public service. The DOE initially said "sure" and now is saying "maybe not". It's a ****ty argument, but assuming you're working directly for a 501(c)(3) or the government (which most residents will be), it has zero effect on you.

While I agree that there is probably not a reason to panic, I don't agree that there is no reason to be concerned. What gives you security in the knowledge that working for your 501(c)(3) won't be subject to that same ****ty argument down the line if DOE decides to tack on additional qualifiers? That's what I'm looking at in this case, what kind of precedent it sets for DOE to retroactively deny eligibility.

Plus, I find it hard to believe the lawyers didn't read and understand the fine print. We can go back and forth about it, but frankly a bunch of doctors playing lawyers trying to point out the fault of the lawyers working for the bar association is about as fruitful as inviting your local soccer moms to M&M conference.

My point was simply to keep an eye on PSLF as these issues unfold so a person doesn't potentially have a big problem later. I've applied for PSLF myself, but intend to keep an eye on developing issues so I can plan long term and adjust appropriately. That's all I'm saying

 

[Igor4sugry]

This post is for those planning to utilize PSLF.
--negative aspects of PSLF have been discussed in multiple other threads.

 

[Siggy]

This doesn't apply to 99% of people.

PSLF applies to those who work for a 501(c)(3), a government agency, an indian tribe, or a few "other" employers in public service. The first three criteria are crystal clear and the third is the only one in doubt: The ABA and the other organizations of interest are neither 501(c)(3)s, indian tribes, nor government agencies. They have other legal designations but their employees are trying to qualify for PSLF anyway due to the argument they are also in public service. The DOE initially said "sure" and now is saying "maybe not". It's a ****ty argument, but assuming you're working directly for a 501(c)(3) or the government (which most residents will be), it has zero effect on you.

That assumes that people find a medical job working for a covered entity. Just because you work at a county hospital doesn't mean you work for the county. The fact that the country contracted with your for profit physician group means you aren't making qualified payments.

If you want to work at the VA, then the question is "Is the amount forgiven made up by the lower pay?"

 

[Siggy]

This post is for those planning to utilize PSLF.
--negative aspects of PSLF have been discussed in multiple other threads.

Cute, but no.

 

[FlowLimited]

While I agree that there is probably not a reason to panic, I don't agree that there is no reason to be concerned. What gives you security in the knowledge that working for your 501(c)(3) won't be subject to that same ****ty argument down the line if DOE decides to tack on additional qualifiers? That's what I'm looking at in this case, what kind of precedent it sets for DOE to retroactively deny eligibility.

Plus, I find it hard to believe the lawyers didn't read and understand the fine print. We can go back and forth about it, but frankly a bunch of doctors playing lawyers trying to point out the fault of the lawyers working for the bar association is about as fruitful as inviting your local soccer moms to M&M conference.

My point was simply to keep an eye on PSLF as these issues unfold so a person doesn't potentially have a big problem later. I've applied for PSLF myself, but intend to keep an eye on developing issues so I can plan long term and adjust appropriately. That's all I'm saying

I agree that there is a risk of additional qualifiers being added on in the future. The nebulous "other" category is the biggest issue. Since the government hasn't provided a strict definition of a "qualifying organization," they seem to be free to change their mind at will. A 501(c)(3) organization is a well defined entity and I suspect that it would be much harder for them to make additional restrictions on that. I would also hope that, should changes to the 501(c)(3) clause be made, folks currently making payments that qualify based on the language in their signed master promissory notes would be safe.

But who really knows?

 

[thxleave]

For those who are doing PSLF (and hoping the program stays around), how much do you stand to save by staying in the program?
a) loan balance?
b) # of residency years counting towards PSLF?
c) amount you will have paid out by end of 120 payments while in PSLF?
d) Total cost if you entered 10yr repayment plan?

for me 3 out of 4 residency years counted towards PSLF. Loan balance at end of residency is $219k. Fedloans sent statement that on Jan 2024 loans should be eligible for forgiveness.
The 120 payments will total $228k.
If I did 10yr repayment plan after residency, I would have paid $295k (so savings of $67k and loans paid off 3yrs sooner).

--PSLF helps account for the unreasonably high interest rates.

a) loan balance 450k at 7.2% interest rate
b) not doing residency, working for local state government regarding pharmacy benefits
c) probably 30k? I consolidated my loan immediately day I received job offer so my student loan payments is now $0 a month for this 1 year of work, and I am in a "joint partnership" not marriage, since repaye is based on married income if you are married. it's 10% of AGI (minus the poverty level), so that's after all my pre-tax investments, so monthly payment is like $200 a month? don't know yet, since I'm still at $0 payments (which counts per government FAQ page)
d) 600-700k due to interest? monthly payment around $5200 a month to pay off within 10 years. That's what the calculators online are saying.

I am going all in with this PSLF with my MD working the local state government. I'll be back here in 10 years to post this.