Broker Check

Public Service Loan Forgiveness (PSLF)

July 19, 2021
Please share this with a resident physician! If you haven't already, you should consider applying for Public Service Loan Forgiveness (PSLF)! Here's the application. Feel welcome to reach out for help! 
The PSLF program allows certain student loans to be forgiven after 10 years of public service. This is great news for physicians, since most hospitals in the United States are approved as public service institutions, and the years of residency and fellowship training are allowable years in the PSLF program. Use the application link below to apply for the PSLF program and stay compliant with the repayment rules (typically income-driven repayment options are elected), and after 120 qualified payments, your student loans can be considered for forgiveness. Even though an economic benefit is derived, the forgiveness benefits in the program are not taxable as income, so there's basically a double-bonus! Since residency and fellowship count towards years of service, through the income-driven repayment option, you could potentially pay very little on this program during medical training due to a suppressed income, so your student loans have the potential to be forgiven as little as a few years after training, with minimal payments. 
Please note that the program has a reputation for being stringent. You need to submit tax returns each year to reevaluate your payment status. To take advantage of lower payments, consult your tax advisor to determine if filing jointly or separately (if married) will lower your student loan payments, depending on your spouse's income. You will want to consult FedLoan Servicing at the US Department of Education to verify your status and get information to stay compliant in the program. You may be requested to apply each year. If you need help with this, I have made many phone calls to loan servicers with clients on the line. 
Here is the PSLF application. If you need help completing this, please reach out!