VA and student loan repayment question

[rallyington]

Does anyone know how the VA student loan repayment option works. From what I understand, the VA is offering up to 120k in 5 years. How and when do they make those payments for your loan. Do they do it yearly, monthly, biweekly, etc.. and do they pay it to you or do they pay it to your loan provider.

The reason I'm asking is I may be taking a job with the VA but I'm on the PSLF which requires that you make 120 consecutive monthly payments before you can apply for loan forgiveness. I've been making payments since after I completed med school. So 4 years of residency and then my 1 year of fellowship after this year would be close to 5 years. If I then work for the VA for 5 years, I can then apply for loan forgiveness which would be a total of 10 years.

So I'm trying to figure out how they distribute the 120k in the 5 years and if it makes any sense for me since I would still need to pay my student loans monthly for PSLF.

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[clayito]

Does anyone know how the VA student loan repayment option works. From what I understand, the VA is offering up to 120k in 5 years. How and when do they make those payments for your loan. Do they do it yearly, monthly, biweekly, etc.. and do they pay it to you or do they pay it to your loan provider.

The reason I'm asking is I may be taking a job with the VA but I'm on the PSLF which requires that you make 120 consecutive monthly payments before you can apply for loan forgiveness. I've been making payments since after I completed med school. So 4 years of residency and then my 1 year of fellowship after this year would be close to 5 years. If I then work for the VA for 5 years, I can then apply for loan forgiveness which would be a total of 10 years.

So I'm trying to figure out how they distribute the 120k in the 5 years and if it makes any sense for me since I would still need to pay my student loans monthly for PSLF.

From what I understand, they make a payment once per year (after each full year of service, they make a payment). Where did you get the 120k total figure? I applied last year and the maximum total was 60k I think; is this 120k due to the new VA legislation?

I ended up not taking the job because of salary ceiling, but the loan repayment is pretty sweet.

 

[Dusn]

How much student loan repayment do they give per year?

 

[clayito]

How much student loan repayment do they give per year?

They pay "up to" 12k per year for "up to" 5 years per my knowledge (total of 60k), but the OP said 120k is the max, so I'm thinking with the recent VA legislation the maximum may have doubled.

One problem I had with the program was the "up to" wording. They would not guarantee me an amount per year and said it would be worked out after I signed a contract. I figured they would end up offering much less loan repayment after I signed the contract and "had me". I think some people negotitate the amount of loan repayment into their contract, but I was not allowed to do so.

 

[ophthope]

One problem I had with the program was the "up to" wording. They would not guarantee me an amount per year and said it would be worked out after I signed a contract.

Seems like a pretty big red flag for an employer to not be willing to negotiate part of the compensation package until after a contract is signed... I think you dodged a bullet by not taking that job.

 

[Dusn]

Well no. The contract is not an issue at the VA because you never actually sign a contract when you join the VA. They send you a letter stating your salary and the number of hours that you're assigned to work per week and that's it. You go to work if you like the deal and if you don't you just tell them it's not going to work out. There's no non-compete clause. There's no restriction if you want to leave. There's no tail coverage if you leave. Granted if I've already started working there I would not want to screw over my patients or co-physicians by not giving any notice at all that I'm leaving but there's really no restriction in writing and there's no contract that you sign.

So it's a very different world in that sense than the rest of medicine.

 

[clayito]

Well no. The contract is not an issue at the VA because you never actually sign a contract when you join the VA. They send you a letter stating your salary and the number of hours that you're assigned to work per week and that's it. You go to work if you like the deal and if you don't you just tell them it's not going to work out. There's no non-compete clause. There's no restriction if you want to leave. There's no tail coverage if you leave. Granted if I've already started working there I would not want to screw over my patients or co-physicians by not giving any notice at all that I'm leaving but there's really no restriction in writing and there's no contract that you sign.

So it's a very different world in that sense than the rest of medicine.

Technically you are correct in that they don't call it a "contract", but what I was offered was a letter with the terms of the salary, loan repayment, and job description, etc. and I either accepted and signed it or rejected it - whether they call this a contract or not, it's essentially what it is. You can negotiate the terms of the "letter", so again I consider it essentially a contract without some of the typical components of such. Semantics...

 

[bth7]

Well no. The contract is not an issue at the VA because you never actually sign a contract when you join the VA. They send you a letter stating your salary and the number of hours that you're assigned to work per week and that's it. You go to work if you like the deal and if you don't you just tell them it's not going to work out. There's no non-compete clause. There's no restriction if you want to leave. There's no tail coverage if you leave. Granted if I've already started working there I would not want to screw over my patients or co-physicians by not giving any notice at all that I'm leaving but there's really no restriction in writing and there's no contract that you sign.

So it's a very different world in that sense than the rest of medicine.

I've heard this from others that the VA is a "different world of medicine." Is that a good thing? I'm really opposed to the kind of corporate mentality at so many hospitals and medical centers these days where administrators are obsessed with VOLUME. I looking for a job where quality is appreciated and I can spend some time with the patients if necessary without working 80 hours a week. I'm also looking for flexibly, working half days, working 40 hours in 4 days, etc. Do you think this kind of flexibility is available at the VA?

Thanks!

 

[dantt]

I looking for a job where quality is appreciated . . .

Thanks!

Did you not have a VA at your residency program?

 

[bth7]

Did you not have a VA at your residency program?

No, not at all.

 

[dantt]

No, not at all.

Va is worse than corporate. Look elsewhere.

 

[Haybrant]

I wanted to followup on this with those of you with experience. I got an offer at VA and they sent me an email with the terms. Initially they said 3 years to repay my 75k in loans. Then they changed it when they sent an email with the final offer to 5 years (kind of a big difference). Is the email the final offer or is there some sort of contract they send?

Also does anyone know if you qualify for VA home loans as a physician. Also are there career development benefits that one can work out through the VA (ie tuition for degree programs)

 

[deleted480308]

I wanted to followup on this with those of you with experience. I got an offer at VA and they sent me an email with the terms. Initially they said 3 years to repay my 75k in loans. Then they changed it when they sent an email with the final offer to 5 years (kind of a big difference). Is the email the final offer or is there some sort of contract they send?

Also does anyone know if you qualify for VA home loans as a physician. Also are there career development benefits that one can work out through the VA (ie tuition for degree programs)

If you are an opthalmologist, the salarydrop to go va is more than the loan repayment, do you just really want to go VA?

 

[Haybrant]

I actually am not ophtho, just found this particular thread and was interested in it. But I am a specialist, this VA will have a academic affiliation and the pay is better than most academic jobs in my field (probably thanks to the salary increases) and the loan repayment puts it into the range of a starting private practice salary (assuming 3 year and not 5 year repayment). Of course you arent building the sweat equity to partnership but im not sure how it works in ophtho. What are the typical private practice starting optho salaries these days?

 

[Dusn]

I think the VA is pretty reasonable deal for a starting ophthalmologists as well (more so if they've really increased salaries at the VA?). Of course if you join a good group and become a parter, years down the line your private practice job could make significantly more than the VA but that all involves risk like any business venture does.

bth - the VA is still looking at your volume but no where nearly as obsessively as a for-profit corporation will be. I've seen VA docs at clinics I've worked at have about 15 min scheduled per patient. But 15 min can feel like a short or a long amount of time depending on how good your help is. I can easily quadruple the number of patients that I could see on my own with great ancillary staff --- so the staff at your VA makes all the difference in the world. Unfortunately the administration of the VA does not understand that and you have less control as a VA doc. (I should also say that you don't have much control as a starting employed physician in just about any setting). In terms of salaries, the VAs are pretty similar to each other but in terms of how well the clinic is run each VA is very different.

It is fun if you like teaching residents. You don't have to do full time either... you can work in private practice and see if they have a 1 day a week fee-based VA clinic you can do.

 

[Slide]

The VA has its perks, great benefits, and if you're starting out, an excellent initial salary. Long term, your earning potential may be capped if you're strictly at the VA. Another great thing (or not so great, depending on how it affects you), is that it's nearly impossible to get fired short of committing a felony from the VA. You'll have to get used to not being your boss, however.