Most Physicians Who Qualify for Loan Forgiveness Don’t Know It, and Time is Running Out

If you have a federal student loan balance and have not looked at the potential to have that debt erased in the last year, you could be missing out, big time.

Temporary rule changes made a whole lot of previously ineligible loan types now eligible for Public Service Loan Forgiveness (PSLF). It’s easier than ever to qualify, but you must take certain steps depending on the type of loans you’ve got.

Taking the right steps today could save you tens of thousands or hundreds of thousands of dollars. Here are a few thoughts we’ve put together to raise awareness in these few remaining weeks before the PSLF waiver expires.

Most Physicians Who Qualify for Loan Forgiveness Don’t Know It, and Time is Running Out

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Consider this: 1. As of the end of the 2nd Quarter in 2022, there were about $218B in Federal Family Education Loan Program loans (FFEL) between 9.6 million borrowers.

Consolidate FFEL, Perkins, and HPSL loans Now

2. According to the Bureau of Labor Statistics, there are about 12.3 million jobs in the nonprofit sector alone. Add in the number of jobs in federal, state, and local government, all of which are qualifying employers for the PSLF program.

3. According to the American Hospital Association, of the 6,093 hospitals in the U.S., 4,118 are not-for-profit, state or local government, or Federal Government hospitals. So in student-loans-speak, there are 4,118 qualifying employers within the hospitals.

Here are three time-sensitive things that need to be submitted by October 31, 2022 for a physician who is working full-time for a qualified employer or has worked in the past for a qualified employer.

Three Time-Sensitive Action Items

1. Any loans pursuing PSLF have to be DIRECT loans or made to become DIRECT loans through a consolidation application on studentaid.gov/ 2. DIRECT Loans need to be on an Income-Driven Repayment (IDR) plan for borrowers intending to continue pursuing PSLF post-waiver.

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