As you graduate from residency or fellowship and continue your career as a physician, addressing your student loan debt is an integral part of the planning process for your financial future. Having a plan to tackle your education debt can allow you to focus on other essential aspects of being a new attending physician.
There are many methods of paying off student loans. One size does not fit all. The repayment plan you chose as a resident or fellow may not be best suited for you now that you are an attending physician. This transition is an ideal opportunity to reassess your plan.
Navigating the repayment options can be a complex process. Engaging professional guidance can help you feel confident in your plan. Some things to consider in your repayment strategy:
A recent statistic indicates that fewer than 1% of borrowers have had their loans forgiven by the PSLF program. This has caused increased anxiety among participants, especially physicians who have very high loan balances. It does not take much to debunk that statistic. Seventy percent of applicants were ineligible, meaning they either did not have qualifying loans or had not made 120 qualifying payments. Another 28% of applicants did not even complete their applications.
The Public Service Loan Forgiveness program can be a powerful tool for physicians working for qualified employers. The best way to check if your employer qualifies is to complete the Public Service Loan Forgiveness Help Tool and submit the Employer Certification Form (ECF)
Another common concern is that the PSLF program will not exist in ten years after a participant has made 120 qualifying payments. Although the Public Service Loan Forgiveness program could be changed with new legislation, borrowers who have already signed promissory notes for their loans with the federal government would not be affected.
Knowing the Ins and Outs of Your Loan Agreements
Private loans differ from Federal loans, and the terms of these loans can vary from student to student. Knowing the specifications of your loans intimately can help save money and worry. If you have the time and acumen, you can research the terms of your loans on your own. Otherwise, it may be best to seek assistance from financial professionals who can advise you on how best to leverage the rules in your promissory agreements.
Will Koster, CFP®, is a financial advisor at Spaugh Dameron Tenny, where he helps high-net-worth professionals develop personalized, long-term financial strategies. Motivated by personal experience and a passion for meaningful planning, Will specializes in providing comprehensive financial guidance. He holds the CERTIFIED FINANCIAL PLANNER® and Certified Student Loan Professional® designations, along with Series 7 and 66 licenses. Committed to building lasting relationships, Will works closely with clients to align their finances with their values, enabling them to focus on what truly matters.
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