1. Student Loans

2. Joe Matelich, MBA Financial Advisor
Introduction
Joe Matelich, MBA
Financial Advisor

3. Overview Public loan repayment programs Private loans Q & A
Public Service Loan Forgiveness
National & State Health Service Corps
FAQs
Implementation advice

4. Take-aways http://lmgtfy.com/?q=White+Coat+Investor+Student+Loans
“The summer home I’ll never get to visit” - Joseph Chiweshe, MD

5. Income Driven Repayment Plans
Standard
Graduated
Income Based Repayment (IBR)
Pay As You Earn (PAYE)
Revised Pay As You Earn (REPAYE)
Income Contingent Repayment (ICR)
Standard
Graduated
Income Based Repayment (IBR)
Pay As You Earn (PAYE)
Revised Pay As You Earn (REPAYE)
Income Contingent Repayment (ICR)
Standard
Graduated
Income Driven Repayment Plans

6. Disclaimer: high-level only

7. Income Based Repayment (IBR)
2009
15%
2014
10%

8. Pay As You Earn (PAYE) 2012 10% Oct. 1, 2007

9. Revised Pay As You Earn (REPAYE)
2015
10%
50%

10. Standard Payment
10 Years
Least Expensive (if no forgivenes)

11. Public Loan Examples - Single
new-intern, internal medicine, single, no kids, $243,000 debt
new-intern, plastic surgery, single, no kids, $300,000 debt

12. Public Loan Examples - Married
new-intern, family medicine, married, 1 kid, $86,000 debt
new-intern, psychiatry, married, no kids, $138,000 debt, husband $20,000/ year

13. Public Loan Examples – Married (cont.)
new-intern, anesthesia, married, 2 kids, $200,000 debt, husband $30,000/ year
new-interns, surgery & internal med, married, no kids, $526,000 debt

14. Rules of Thumb IBR -> switch PAYE -> switch
REPAYE -> switch ?
Spouse makes over ~$60,000
You make over ~$300,000
You have over ~$300,000 in debt
Private Loans -> refinance

15. Private Loans Banks, Sallie Mae, etc. High interest rate
Loan forgiveness rare

16. Refinancing Loans Now Again post residency/ fellowship Pitfalls
Private Loans
Public Loans (w/o forgiveness)
Now
Again post residency/ fellowship
Pitfalls
New terms
Variable vs. fixed rate
Co-signer
Only after residency
Only w/o forgiveness option
Pitfalls
Cannot re-enter IDR
No Loan forgiveness
Death & Disability

17. Source: https://whitecoatinvestor

18. Loan Refinancing Companies
1) Sofi – as low as 2.355%*
2) Credible – as low as 2.34%*
3) Common Bond – as low as 2.35%*
4) LendKey– as low as 2.21%*
5) Earnest– as low as 2.40%*
6) LinkCapital– as low as 2.94%*
7) Darien Rowayton Bank – as low as 2.94%*
* as of 2/7/17

19. Private Loan Examples

20. Q & A
From Part 1

21. Part 2 Public loan repayment programs Private loans Q & A
Public Service Loan Forgiveness
National & State Health Service Corps
FAQs
Implementation advice

22. Forgiveness Programs Public Service Loan Forgiveness (PSLF)
National Health Service Corps (NHSC)
State Health Service Corps (SHSC)

23. PSLF 10 Years 501c(3) Remaining federal loan $debt

24. Will PSLF be around in 10 years?
Cannot predict what Congress will do
Save up $ in a side investment account
Grandfathering
1987, 1993, 2014 (PAYE)
REPAYE is encouraging
Married filing separately
Removes the cap
Current court case January, 2017

25. NHSC 2 Years Qualifying institution 2 x $25,000 (HPSA scores)

26. SHSC ~2 Years Qualifying institution Megan’s experience
CO = 3 x $30,000
WA = 2 x $17,500
MT = up to $100,000 over 5 years
PA = 2 x $50,000
Qualifying institution
Megan’s experience

27. Q & A
From Part 2

28. Part 3 Public loan repayment programs Private loans Q & A
Public Service Loan Forgiveness
National & State Health Service Corps
FAQs
Implementation advice

29. Frequently Asked Questions (FAQs)
Married-filing-separately “loophole”
switch from REPAYE to PAYE & file taxes separate
Tax consequences
REPAYE doesn’t have the 10 year, standard payment cap
Switch to PAYE at end of residency / fellowship (partial financial hardship)
Consolidation of loans resets 10-year clock for PSLF
Is loan forgiveness taxable?
PSLF -> NO
NHSC & SHSC -> NO
20 or 25 year -> YES

30. Implementation Advice
Preface
Jan 16, 2017
DqzmwBDjk&feature=youtu.be&t=23m56s

31. Video Recap Get rid early in career
Resident -> REPAYE (50% subsidy)
Post-residency
501c(3) -> PSLF with min. payments
Tax-free forgiveness
Live like a resident (2-5 years) -> pay off after refinancing
I favor the “scorched earth, gazelle intensity” approach to the “20-30 year payment plan” approach. – Jim Dalhe, MD

32. Q & A