1. Loan Forgiveness Programs Student Enrichment Series April 22, 2008 Carrie Steere-Salazar Director, Student Financial Services Office UCSF

2. What’s a Loan Forgiveness Program? Agreement to repay all or a portion of your loans in exchange for service – Generally in primary care settings – Teaching – Other positions that are not as lucrative – Public benefit – Loan repayment amount can depend on time commitment

3. Why Would You want this? If owe $120,000 debt: $1,409.15/mo If owe $200,000 debt: $2,348.58/mo Loan repayment is another option so that loan debt is relieved Total or partial relief

4. More about what a Loan Forgiveness Program Means Paying off loans can trigger a “taxable event” Location, location, location Weigh commitment versus benefit of being debt free

5. Loan Forgiveness Resources SFSO website – http://saawww.ucsf.edu/financial/general/loan.htm http://saawww.ucsf.edu/financial/general/loan.htm FINAID.ORG general website – http://www.finaid.org/loans/ibr.phtml http://www.finaid.org/loans/ibr.phtml AAMC website for medical students – http://services.aamc.org/fed_loan_pub/index.cfm http://services.aamc.org/fed_loan_pub/index.cfm National Health Service Corp website – http://nhsc.bhpr.hrsa.gov/members/loan_repayors/ http://nhsc.bhpr.hrsa.gov/members/loan_repayors/

6. Types of loan forgiveness programs Federal: Dept of Ed and Health/Human Services – Loan forgiveness for public service (new: October 2007) – National Health Service Corps – Indian Health Service Corps – Nurse Faculty Loan Program State – State loan forgiveness programs – SNAPLE (Nursing) Private – Signing bonus incentives

7. Federal Loan Forgiveness Programs Department of Education – Public Service Loan Forgiveness Health and Human Services – NHSC – Indian Health Service – Military

8. State Loan Repayment Programs Health Professions Education Foundation State Loan Repayment Program (NHSC/SLRP) State/federal matching programs (State Loan Repayment Program) SNAPLE (State Nursing Assumption Program)

9. Private Loan Repayment/Forgiveness Rich relative Private hospital or clinical setting may be seeking physicians, dentists, nurses or pharmacy practitioners: hiring incentive programs (Sutter Health, Delphi, etc) Google “health hiring incentives” or “loan repayment”

10. New national program Loan Forgiveness for Public Service – 501© 3 agency or hospital – Public health – 10 years of repayment (Direct Loan program) Consolidate Loans into DL Choose extended repayment plan – Taxable event???

11. Loan Forgiveness Considerations Commitment of time Public Service something you want to do anyway Debt reduced or debt free after service obligation completed Taxable event and how to plan for that

12. Loan Forgiveness: questions? How can we help? – 415-476-4181 general office number SFSO – Websites – Watch for E-mail information from the office – Explained during Exit Interview sessions