1. Physician
LOAN FORGIVENESS
and REPAYMENT

3. ROAD MAP: Re-frame the Student Loan conversation
Public Service Loan Forgiveness
Get candidates to YES faster
Support retention
Options for For-Profit Employers
Joy, please add any additional information you’d like included.

4. 84% of new have student loan debt Medical Graduates
Source:
Source:

5. $100,000?
$50,000?
$693,000

6. Financial pressure Interest $344,739 $300,000 education debt
Monthly payments of $3,506
Extended plan payments $2,149
Interest $344,739
Joy, please add any additional information you’d like included.

7. Impact on physicians Symptoms of depression
Delay marriage, childbearing, major purchases
Regret choosing family medicine
Pursue different career opportunities
Joy, please add any additional information you’d like included.

8. Signing bonuses Loan repayment offers Higher salaries
Financial support Trends:
Signing bonuses
Loan repayment offers
Higher salaries
Joy, please add any additional information you’d like included.

9. 46% Feel Burned Out OF PHYSICIANS
Source: The 2015 Medscape Physician Lifestyle Report
Source: The 2015 Medscape Physician Lifestyle Report

10. Top factors influencing burnout:
Too many bureaucratic tasks
Long hours at work
Insufficient income
Source: The 2015 Medscape Physician Lifestyle Report
Source: The 2015 Medscape Physician Lifestyle Report

11. RE-FRAME the conversation
Source: The 2015 Medscape Physician Lifestyle Report
Source: The 2015 Medscape Physician Lifestyle Report

12. PUBLIC SERVICE LOAN FORGIVENESS
Created by Congress in 2007
10 years of payments
Tax-free forgiveness
Source: U.S. Department of Education. See for details.
Source: U.S. Department of Education. See for details.

13. THREE QUALIFYING FACTORS
Qualifying loans: FEDERAL only
Eligible repayment plan
Non-profit or public employer
Source: U.S. Department of Education. See for details.
Source: U.S. Department of Education. See for details.

14. Dr. Susan’s Problem Original loan amount $ 275,000
Standard
Original loan amount $ 275,000
Monthly payment $3,130
Principal - interest paid $375,548
Total debt forgiven $0
Years until debt relief 10
Walk through the example

15. Dr. Susan’s Solution Original loan amount $275,000 $275,000
Standard PAYE
Original loan amount $275, $275,000
Monthly payment $3, $325 to $1,624
Principal - interest paid $375, $162,121
Total debt forgiven $0 $310,266
Years until debt relief
Walk through the example

16. PSLF Checklist I have federal Direct loans Yes No
My loan balance is higher than my current salary
I plan to work for a nonprofit or public hospital

17. Private refinance? Rates? Terms? Other factors
Source: “The Hidden Costs of Declining Physician Engagement”, Dr. Dan Smith

18. Refinance example Lower payments by $540 Save $65,000 overall
($300k at 7.15% vs 3.5% for 10 years)
Source: “The Hidden Costs of Declining Physician Engagement”, Dr. Dan Smith

19. lenders www.credible.com Sofi, DRB, others Local Bank
Source: “The Hidden Costs of Declining Physician Engagement”, Dr. Dan Smith

20. What’s the Catch?
“Our great struggle in medicine these days is not just with ignorance and uncertainty. It’s also with complexity: how much you have to keep in your head to think about.”
--Atul Gawande

21. Getting Advice White Coat Investor forum Loan servicing company
Attorneys, financial advisors
Independent advisors
Fee expectations

22. Simple Solutions EDUCATE! thru presentations, webinars, articles
$1 Million Dollar Challenge
Student loan advice

23. THE RESULTS 17 of 20 offers accepted
Filled 75% more positions this year
Reduced loan retention $$
Second opinions saved $40k-$400k

24. USING NATIONAL AVERAGES increase in net revenue to organization5%
USING NATIONAL AVERAGES
REDUCTION IN
TIME-TO-FILL
RESULTS IN A
$973,863
increase in net revenue to organization
Source: $1.4mil, 222 days to fill, 24 searches.
Source:

26. Resources
Research on Family Medicine and Student Debt: Julie Phillips, MD, MPH, Michigan State University,
Calculating the value of reduced time to recruit:
Federal student loan repayment:
Employment Certification Form for Public Service Loan Forgiveness:
National Health Service Corps:
Private loan refinance:

27. Additional Questions? Contact Joy Sorensen Navarre
DISCUSSION
Additional Questions? Contact Joy Sorensen Navarre
Phone: (612) |