MD Preferred Blog

*The views expressed by the authors below do not represent the views or opinions of MD Preferred Services.

How to get more out of Public Service Loan Forgiveness

Wednesday, April 05, 2017

In our experience, few physicians understand how to take full advantage of the opportunities afforded them through PSLF (Public Service Loan Forgiveness), which could cost them upwards of $20,000-$40,000 per year depending on the amount, type of debt and personal circumstances.

On average new physician client begins medical residency with a staggering $250,000 of medical school debt (range of $0-$400,000). This is occurring during a time when how physicians are employed and the incomes they earn, are in flux2
The first step for a graduating student is to learn how to navigate and understand the government programs for loan forgiveness. There are several options to choose from but each requires an understanding of your distinct circumstances. It is not a simple decision as life changes.

Here are some considerations:

How much debt do you have?
What type of debt (Direct Loans or other Federal Loans)?
Do you currently work for and/or have future plans to work for a tax-exempt organization such as a not for profit hospital or a public benefit corporation?
How much do you currently earn?
How much do you expect to earn in the future?
Marital Status, family size and income of spouse 
Are you currently enrolled in an Income Driven repayment plan and when did you first start making payments?
Are you taking full advantage of tax-deductible benefits?

Once you know the considerations then you need to choose the right program:

IBR (Income Based Repayment), PAYE (Pay As You Earn), REPAYE (Revised Pay As You Earn), ICR (Income Contingent Repayment), Standard Repayment, Graduated Payment.

For over 45 years, Pastore Financial Group has helped medical professionals learn how to make informed financial decisions. Our experience has shown us that physicians are excellent problem solvers in their fields but they are often not educated on how to apply their skills to solve financial problems. We assemble all of their financial information in a way that it is easy to comprehend and analyze so they can feel comfortable making these important life decisions and implementing strategies to reduce debt, build wealth and protect income so plans are self-completing.

Many physicians move from state to state during medical school, residency, fellowship, and during their careers. Pastore Financial Group currently works with physicians in 28 states, helping them throughout all stages of their careers.  We are constantly expanding our national coverage as our client-base expands geographically.  

To join us for a complimentary webinar to learn how best to manage your student loans, click here
To schedule a complimentary individual consultation, click here
Or, for more information call 1-800-228-4067, email us or visit our website


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