White Coat Investor Podcast WCI #391: The Student Loan Roller Coaster
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Oct 31, 2024 Delve into the chaotic world of student loans, where borrowers navigate the ups and downs of income-driven repayment plans. Experts share insights on the Public Service Loan Forgiveness program, legal uncertainties, and new repayment strategies tailored for medical professionals. Experience a unique mix of personal anecdotes from a team retreat that emphasize the need for financial wellness. Learn about effective tax strategies as you transition from residency to full-time roles, and discover how to tackle the complex landscape of student loan repayment.
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PSLF Basics and Security
- Public Service Loan Forgiveness (PSLF) requires 120 payments on federal loans while working at qualifying nonprofit employers.
- It is considered safer and tax-free after 10 years, unlike longer income-driven forgiveness which may lead to a tax bill.
Restart Payments to Save Forgiveness Time
- For borrowers stuck in the SAVE program legal limbo, consider switching to IBR or other options to restart payment progress.
- Early action helps avoid delays in reaching forgiveness milestones amidst ongoing court battles.
Use PSLF Buyback to Restore Credit
- To recover months lost in forbearance, use PSLF buyback by making lump sum payments based on prior income.
- Buyback is available only after reaching 10 years of payments and may require saving to cover large sums.