Are you still curious about student loans? Wondering what you need to prepare and apply for Public Service Loan Forgiveness (PSLF)? It’s not as straightforward as you might think, so get all your ducks in a row.
In this episode of the Finance for Physicians Podcast, Daniel Wrenne talks to Jeff Wenger, a Certified Financial Planner (CFP®), about starting and progressing through the PSLF process.
- Forbearance: What payment plans count for PSLF, but not COVID or others?
- 4 Income-driven Repayment Plans:
- Pay As You Earn (PAYE)
- Revised Pay As You Earn (REPAYE)
- Income-Based Repayment (IBR)
- Income-Contingent Repayment (ICR)
- 6-Month Grace Period: Default option for most loan types
- Golden Ticket: After med school graduation, no income equals zero repayment
- Strategies: Skip grace period – the more low-cost payments made, the better
- Nonprofits: Verify payments and work for employer with PSLF certification
- Additional Complications: Fed Loans (PSLF loan servicer) is leaving business
- Loan Types: Make sure you have direct loans, or consolidate some of them
- Timing: How to optimize PSLF and when to file tax returns with income evidence