Career and Life Planning Guidebook for Medical Residents

R E A D : PSLF- IBR/ PAYE/ REPAYE Okay, so we’ve laid out a few debt forgiveness programs. I am guessing that you will go for PSLF (at least initially in your residency)! If that is the case for you, let’s dive into the first choice you’ll need to make - which repayment program for PSLF should you consider and why? How Repayment Works As you complete the direct consolidation loan, you must pick a repayment program. The four most common programs are the Income- Based Repayment (IBR) Plan; the Pay-As-You-Earn (PAYE- -or PER, as I sometimes refer to it) Plan; the Income- Contingent Repayment (ICR) Plan; and the Ten-Year Standard Repayment Plan. In this chapter, we focus on IBR and PAYE, as they require lower payments in residency and fellowship than do the other plans, how do lower payments lead to greater forgiveness? After consolidating your debt, you begin making monthly payments during the ensuing 120 months. Make sure EVERY YEAR to complete, with your employer’s certification, the Employment Certification form. You will also need to complete this form whenever you change jobs. Submit the completed form to FedLoan Servicing (PHEAA), the PSLF servicer, following the instructions on the form. Fed Loan Servicing (PHEAA) will review your Employment Certification form, ensure that it is complete, and, based on the information provided by your employer, determine if your employment is “qualifying employment” for purposes of the PSLF Program. “Live like a resident for the next 15 years so that you can pay off your debts & feast like a king for the next 30 years” – Dave Denniston F I E L D N O T E S Managing Your Student Debt 371 WWW.PHYSICIANCAREERPLANNING.COM