1. LOAN FORGIVENESS and REPAYMENT
A Physician’s Guide to
LOAN FORGIVENESS
and REPAYMENT
Conflict of Interest Statement: Speaker is president of Navigate, a company that consults with health systems regarding student loan education and advice for employees. UPMC secured the services of Navigate. The purpose of the seminar is educational and includes no solicitation of any type.

3. ROAD MAP Public Service Loan Forgiveness Options for Private Refinance
Flip the script on student debt
Joy, please add any additional information you’d like included.

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

5. $300,000
$150,000
$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, major purchases
Regret choosing family medicine
Joy, please add any additional information you’d like included.

8. Impact on Health system
“… negative impact on physician performance…” –Dr. Julie Phillips
Joy, please add any additional information you’d like included.

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

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

11. Public Service Loan Forgiveness
common
Public Service Loan Forgiveness
mistakes

12. Type of loans FFEL or Direct loans? National Student Loan Data System
Direct Consolidation Loan
When NOT to consolidate?

13. REPAYMENT PLANS STANDARD GRADUATED or EXTENDED INCOME-DRIVEN PLANS
INCOME-BASED REPAYMENT (IBR)
PAY AS YOU EARN (PAYE)
REVISED PAY AS YOU EARN (REPAYE)

14. employment Government or Nonprofit Full time—30 hrs/week
Employment Certification Form

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. Details … Married borrowers’ benefit Missing the annual deadline
The “paid ahead” trap
Source: “The Hidden Costs of Declining Physician Engagement”, Dr. Dan Smith

17. Refinance Lender pays off existing loan You get a new loan
You get a lower interest rate
As of 09/01/2017: fixed rates from 3.350% APR; variable rates from 2.815% 

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

19. 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

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

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

22. FLIP THE SCRIPT--RESULTS
Residents saved $40k-$400k (family medicine, radiology and emergency medicine)
Cumulatively: $3.2 million

23. THE SYSTEM RESULTS 17 of 20 offers accepted
Filled 75% more positions this year
Reduced turn-over
Supports physician resiliency

24. FREE Resource Discovery Session
Confirm YOUR student loan plans with an individual, 15-minute phone call.
Text DISCOVERY to
-Offer expires 10/18/2017

25. Final Thoughts
“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

26. SOURCES:
Research on Family Medicine and Student Debt: Julie Phillips, MD, MPH, Michigan State University,
Federal student loan repayment:
Employment Certification Form for Public Service Loan Forgiveness:
National Health Service Corps:
Private loan refinance:

27. DEAR RESIDENTS
• Do you have questions on your student loans? • Do you wonder if you qualify for Public Service Loan Forgiveness? • Are you wondering if you should start payments now or defer until after residency? We’ve partnered with Navigate, national experts on physicians’ student loans, to answer your questions. If you answered “yes” to any of the above questions, then schedule a free 15-minute appointment with Navigate (link here) to get your questions answered. If you wish to continue with a full analysis and action plan, we’ve negotiated a discounted fee of $395 (regularly $1000). No pressure--and satisfaction is guaranteed.