Career and Life Planning Guidebook for Medical Residents

NATIVE AMERICAN FORGIVENESS PROGRAMS Besides working for a private non-profit practice or a larger public entity or HMO, some physicians may want to consider another alternative- working with Native American Tribes. You can learn more by going to: www.ihs.gov/loanrepayment/ Who? Applicants are physicians specializing in obstetrics/gynecology, psychiatry, internalmedicine, family medicine, and pediatrics. Requirements. Must serve at a location on a reservation or other specified place by IHS. A few quirks to be aware of: IHS utilizes a ranking system to address the goal of filling staff vacancies in Native American health programs when granting LRP awards. This system assigns priority consideration to Native American health program sites with the greatest staffing needs in specific health profession disciplines. Also, IHS gives priority to applications of American Indians and Alaska Natives and to individuals recruited through the efforts of Native American Tribes and Tribal or Native American organizations. The Nitty Gritty Payment Details. Physicians are eligible to receive up to $20,000 per year in health professions educational loan repayment when working for the IHS. Tax Consequences. These payments are subject to state and federal income taxes. IHS will pay an additional 20% to the IRS to offset increased tax liability. TimeCommitment. Atwo-year service commitment is required. “Erasing your debt is like a marathon. Don’t burn up all your energy in the first mile. Pace yourself and you’ll get there!” – Dave Denninson F I E L D N O T E S EMPLOYER LOAN FORGIVENESS PROGRAM Who? You, if your employer allows it! Requirements. Your employer may offer you a bonus or a forgivable loan in order to help you pay off your loans quicker. The Nitty Gritty Payment Details. Every employer is different, but they usually want to incentivize you to stick around and they’ll help you pay off all or part of your loans over the course of a few years. Tax Consequences. These payments may or may not be taxable depending upon how they do it. Time Commitment. The employer will usually require you to stick around three to five years. Here’s an example of another state forgiveness program: Managing Your Student Debt 375 WWW.PHYSICIANCAREERPLANNING.COM