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A lot of questions surround the Public Service Loan Forgiveness (PSLF) program since 99% of first-time applicants were denied forgiveness in late 2017 and early 2018. Since then, the program has been temporarily expanded and still has problems. You can learn more on NPR here.
The rules about who qualifies and what loans qualify for tax-free forgiveness after ten years of on-time payments are specific, and if you are working for an organization that allows you to pursue PSLF as a dentist, you should be very familiar with the nuances of the program. This week Travis Hornsby at Student Loan Planner, interviewed a married couple who successfully saw a large portion of their loans forgiven under the PSLF program. The episode is worth listening to if PSLF is an option for you. You can find the episode below:
While the program is far from perfect, and borrowers are still confused about its requirements, some people are receiving forgiveness – proof that the program is real and will likely work if you follow the rules.
Many students will be matriculating from dental schools and residencies over the next 2 months, and student loans will be on their minds. Developing a strategy to repay (or at least manage) your loans early is extremely important. If you want to calculated what your monthly payment will be under PAYE or REPAYE, follow the steps outlined in the post.
Recently, there was a post on the Dental Nachos Facebook Group about what schools a young pre-dental student should apply to. You might have seen it. In my opinion, any answer besides the cheapest school with a cap (I put the cap around 300k), is absurd advice to give to a student you know little about, and it perpetuates the problem.