How To Maximize Your PSLF Forgiveness - The White Coat Investor - Basics

Описание: Doctors use a few strategies to try to maximize the PSLF amount forgiven.

Enroll in an IDR program and start making payments late in your fourth year of medical school—essentially increasing the percentage of payments you make while your income, and thus your payments, remain low.
Complete a direct federal consolidation right after medical school graduation and opt-out of the 6 month grace period. This will allow you to start making IDR payments 3-4 months earlier. This means 3-4 more IDR payments as a resident vs a high-paid attending.
Contribute to tax-deferred retirement accounts during residency, which further lowers your income and your required payments.
If married to a high earner, it may be advantageous to file your taxes as “married filing separately” while enrolled in an IDR program. Even though this often increases your combined tax burden, it can significantly reduce your student loan payment in IBR and PAYE.
Choose a longer training period, which can help maximize forgiveness. A physician who spends seven years in residency and fellowship may need to make full payments for only three years as an attending before receiving forgiveness.
Private student loans are never eligible for PSLF, and the best strategy for managing those usually involves refinancing to a lower rate as soon as possible (usually shortly after medical school graduation or as soon as you can receive an interest rate lower than the effective interest rate after REPAYE subsidy is applied) and paying them off early in your career. Several lenders allow very low payments during training, just like the federal IDR programs.

The White Coat Investor has been helping doctors with their money since 2011. Our free financial planning resource covers a variety of topics from doctor mortgage loans and refinancing medical school loans to physician disability insurance and malpractice insurance. Learn about loan refinancing or consolidation, explore new investment strategies, and discover loan programs for specifically aimed at helping doctors. If you're a high-income professional and ready to get a "fair shake" on Wall Street, The White Coat Investor channel is for you!

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00:00 Maximizing PSLF Forgiveness
00:47 Contribute To Retirement Accounts
01:21 Married Filing Separately
01:58 Private Student Loans