Fee Only Certified Financial Planner (CFP) Jacksonville & Ponte Vedra

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Physician's Guide to Public Service Loan Forgiveness (PSLF)

By Scott Snider

Most of my physician clients prefer it when I get right to the point. Quite frankly, they don't care for all the fluff and expect a short, concise explanation. After all, they are busy people so time is of the essence. With that in mind, I created a 5-page powerpoint style guide that explains how Public Service Loan Forgiveness (PSLF) works, outlined the 5 step process so that your loans qualify for Federal debt cancelation, and what to avoid so you aren't hit with any unpleasant surprises. As a bonus, I added a slide that points you to other helpful resources.

In the event you need additional help putting it all together, don't hesitate to contact me (Scott) with your questions and I will respond to your inquiry within 24-48 hours. 

Public Service Loan Forgiveness (PSLF)

The tax-free forgiveness is huge. Otherwise, private sector physicians who get debt forgiveness are looking at a ticking "tax bomb" that could cost them anywhere between $25,000 - $100,000.

How to leverage PSLF as a Physician

It is especially important to evaluate your debt savings vs. compensation offers before you become an attending and agree to sign the dotted line. Doing so gives you negotiating power and either maximizes your gross income and bonuses or reduces your overall debt burden.

5 Steps to Qualify for PSLF

There are no shortcuts. Every step must be followed as you see it spelled out above. Skipping steps could disqualify your loans from PSLF or set you back many months or years until the debt is written-off.

PSLF Pitfalls to Avoid

The worst offenders are not consolidating FFEL loans and repaying loans under the Extended and Graduated plans. Not too far behind is failing to change the loan status to repayment. Any payments made while the loan is classified under a forbearance or grace status do not qualify.

Resources & Calculators

My favorite calculator for projecting the total cost is the VIN SImulator. Heather Jarvis is a great resource for the DIY types. AAMC has an extensive PDF guide that you can download.


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