^ Yes, and if that cap becomes law, then PSLF would make very little financial sense for many(most?) young physicians.
Wow - that is impressive. D has said that next year will be a bit better when it comes to time because she will no longer have to pre-round but still I canât imagine her taking on more shifts. It is possible she plans on it and hasnât mentioned anythingâŠshe has said that she will be jumping into her area of research with more vigor next year. What a road.
I assume itâs program dependent, but when moonlighting is permitted, are residents covered under programâs malpractice plan?
Whether the the malpractice insurance covers moonlighting is also program dependent.
In D1âs case, her program pays for additional malpractice coverage for their residents after intern year specifically so they can moonlight.
I donât know if the additional coverage is available to all residents or just to residents in her specialty.
About loan repayment:
Some people are certain they wonât aim for PSLF, if so, they might want to investigate the info at the white coat investor DRB starts refinancing loans for residents. I believe it is against the TOS to post the link itself
Then the question becomes, will you benefit from PSLF or not? If not, then start paying them down ASAP, if so, then donât pay early.
A resident with a very long program is likely smart to PSLF, a person doing fellowships and/or planning to work part time would likely do PSLF.
The prior posters were correct, the first year any forgiveness will happen in 2017, once that happens and once the newspapers report on a neurosurgeon who got a huge loan forgiven after a 9 year residency, then we shall see what develops.
Regarding forgiveness, some contend that there may be income tax consequence, I think there is an income tax charge currently assigned to the program that forgives after 25 years, I am not sure where we are on PSLF. Also there is ICR-IBR-PAYE old and PAYE new. The pundits at the SDN forum have been discussing this for years, the consensus (for what it is worth) is that the people must be grandfathered as their notes offer PSLF. The contention is that the NEW PAYE is going to be subject to any new limitations and that the loan servicers are trying to more people to the new PAYE program.
Itâs a lot to think about
I asked my D about moonlighting when I spoke with her the other day and she mentioned that she is jealous of her cousin who is finishing an IM residency and works an extra shift from time to time. It is good money. She doesnât see it happening in the surgical residencies - ob/gyn being one of them. She mentioned that it might be possible during fellowship and she knows that one of her fellows does it because she takes a shift on the floor every so often. I learn something from this board every time I come here. Moonlighting - not something I would have thought possible.
@elleneast - You were young during 80s and can only think of the TV show? 
I loved that show!
Might as well chime in!
I chose PAYE. PAYE requires you to pay a lower percent of your monthly discretionary income, which makes the monthly payments a little easier (PAYE is 10% of monthly discretionary income; IBR is 15% of monthly discretionary income). You are only eligible for PAYE if you were a new direct loan borrower after 10/1/07; I started college in 07, but didnât take out loans fall semester freshman year, so my ânew borrowerâ date is after 10/1/07. (10/1 was chosen because of relevance to fiscal year.)
I will also consolidate my loans because consolidation removes the mandatory 6mo grace period. If you want to do PSLF (I do), you canât begin making 120 qualifying payments until you are out of the grace period. You get the most bang for your buck if you make as many low qualifying payments as possible. I would rather have 6mos of low qualifying payments than 6mos of mandatory grace period. I will continue making PAYE payments throughout my 3yr residency, and will save any additional income I could be putting toward my loans. After residency, I will decide to pursue PSLF (by 2018, the future of PSLF should be more clear than it is now) vs refinance my loans (currently you can refi direct loans from an average of around 6.8% to about 2.5-3%), apply a lump sum payment (of the amount of my additional savings for that purpose during residency), and then enter the refi loan repayment plan. Itâs worth noting that refinancing disqualifies you from income-driven repayment plans. I can share websites and webinars from CFPs regarding all this if youâd like.
As others have mentioned, PSLFâs future is uncertain at this point. And as someone mentioned, PSLF was included in the master promissory note we signed for medical school (or as undergrads; the MPN is valid for 10yrs), which implies PSLF should legally be available to us, and thus we should be âgrandfatheredâ in. However, the MPN actually references the Act, so if Congress amends the Act, then there is no longer the theoretical protection offered by the MPN. At the same time, practically everything legal is based on precedence, and there is plenty of precedence that says we should be grandfathered in by the MPN clause regardless of any potential amendments (because of what the Act read when we signed the MPN). (Also worth noting: if you choose to consolidate, then you sign a new MPN; however, the PSLF clause/reference to the Act is still present in the MPN graduates would sign for consolidation this year.)
Some people think filling out the employment certification form (I think thatâs what itâs called) may be a way to âenrollâ in PSLF. This form verifies that your employer is eligible for PSLF. Among the reasons PSLF has gotten so much scrutiny lately is that it was discovered that staffers on Capitol Hill were poised to seriously benefit from PSLF, and thus other politicians looked into it. The quick summary is that the politicians/analysts think anyone âcurrently enrolledâ in PSLF should be fine; however, thereâs no way to âenrollâ in it, and thereâs no paperwork for it, with the possible exception of the ECF. I can share some relevant blog articles with anyone interested.
In non-financial newsâwe bought a house! Weâre moving in about a month! We just got back from 1 vacation and are headed on another soon! We graduate in less than 2 weeks! Weâre getting married July 2016! Certainly an exciting time
Kristin, Congrats for your buying a house and your upcoming wedding in July 2016.
The discussion about student loan payment makes my head spinning. Hopefully, it will be our Sâs concern, not ours. In the past few years, we did what we could in paying down the interest portion of his loans so that the total loan amount will not increase too much. We will likely stop doing this after we retire.
Somehow, he has some institution loans every year which do not accrue interest while in med school and do not require payment in the first 2 or 3 years in residency. However, its interest rate is higher by 0.75% (if I remember it correctly) as compared to the interest rate of the federal direct loan. Not sure whether this kind of loan is âgoodâ or not. (I think it could be good.)
Congrats. Kristin!
Yes, we are heading to Graduation in 10 days. It will be also a family reniun, looking forward to be at the same table with everybody, but my Granddaugher who has performance on the same weekend.
Congrats on getting âMDâ by your name! D. said that they can be called MD the next day after graduation.
Graduation here is Friday!
And congrats kristin on your new house and on a setting a wedding date!!
Congrats, Kristin!
Thanks all! Itâs a fun and exciting time to be me
Kristin - This is wonderful news! Best wishes to you!
Congratulations on the wedding date. I will hold my judgement on the house. It is too much work for new residents!
Congrats Kristen! Seems like just yesterday that the folks on here were helping you through the med school application process. Now we can call you doctor!
Triple Congrats Kristin- Graduation, House and Wedding!!! You guys certainly are growing up.
Thereâs a doctor in the house!
Already? I am waiting to attend a graduation at the end of the month in Houston.
Congratulations Drâs mom!