A Strategic Approach to Managing Your Debt and Finances During Your Utah Residency University of Utah Resident Orientation Presented by John Collins, Managing Director of GL Advisor

Agenda IBR versus PAYE Tying the Knot Training Exit Interview White House Budget Proposal

* Based on data collected by AAMC, AMA and GL internal student database Changes in Student Debt Levels Debt levels have quadrupled in the last 20 years ~$50k ~$89k ~$220k 2013 ~$300k+

IBR vs PAYE INPUTS Total Federal Student Loan Debt $300,005 Family Size 1 Weighted Average Interest Rate 7.09% State Lower 48 Family Income, Last Year $0 Assumed Attending Salary $250,000 This Year's Family Income $26,000 Years in Residency 3 PAYE provides additional $2,270 in liquidity during residency PAYE reduces total cost by $83,450 compared to IBR when considering PSLF Recent order by Obama broadens eligibility

Tying the Knot A PGY2 resident with $207k in federal student loan debt on academic career track gets married. How does the loan repayment strategy change if the spouse has no student loan debt and makes $90K salary? Forgiveness potential $150,305 Forgiveness Potential $232,039 Forgiveness Potential $232,039

EXIT INTERVIEW After 4 years of training, a graduating resident contemplates the next step in her career. How does loan forgiveness impact the economics of working for a non-profit? Original Debt: $250,000 Debt after training:$308,000 Non-profit salary offer:$155,000 For-profit salary offer:$205,000

Salary Equivalent Public VS Private Assumptions: PAYE eligible. The taxable equivalent amount assumes a marginal federal tax rate of 20% and a marginal state tax rate of 5%. Actual Public Service Salary Actual For-Profit Practice Salary Additional from Public Service derived from forgiveness

White House Budget Proposal Repayment Under Obama's Proposal Income Driven Repayment Calculation Limited to 10% of discretionary income Cap on payments removed Loan Forgiveness 10 Years if working in the Public Sector AND loan balance less than $57, years for borrowers with total loan balance less than $57, years for borrowers with total loan balance greater than $57,500 Expansion of PAYE to all federal loan borrowers Helps reduce cost for borrowers, simplify process for servicers Removal of the cap on payments New cap on amount forgiven through PSLF $57,500 limit, based on max borrowing amount for independent undergrads Balances above $57,500 will not be forgiven until 25 years of participation 20 and 25 year forgiveness options to be tax-free

White House Budget Proposal Average Student Loan Debt Portfolio, 2014 Med Grad Loan TypeOriginal BalanceRate Subsidized Stafford $17, % Unsubsidized Stafford $155, % Grad PLUS $24, % Total $196, % *Loan balances, rates, and payment information based on GL Advisor client data. Payment calculation assumptions can be provided upon request. Loan Repayment Analysis Payment Scenario Average Monthly Payment Payoff Term (months) Total Spent PAYE and PSLF (today)$807120$96,893 PAYE and PSLF (proposal)$1,216240$291,829 Difference$409120$194,936

Action Plan  Consolidation: Evaluate and complete a consolidation with the Direct Loan Program.  Income-Based Repayment / Pay As You Earn: Apply for and enter IBR or PAYE (during residency). Re-apply annually with income documentation and family-size verification.  Manage Liquidity: Ensure you have sufficient cash flow to make all necessary loan payments.  Manage Discretionary Income: Determine how to allocate extra cash to insurance, retirement, and other needs.  Public Service Loan Forgiveness: Track eligible payments, maintain employment documentation.  Tax Filing: Incorporate impact of taxes on federal loan subsidy programs when filing

For more information and to schedule a complimentary personal consultation, please see John in the lobby after Orientation: Main: All government sponsored programs are subject to their continued existence, availability and participation requirements. GL Advisor is a division of Graduate Leverage, LLC. GL Advisor currently does not offer all services to residents of North Dakota.