Attendings/or close to...

[MarissaNicole]

How many of your spouses work for not-for profits? I didn't realize that most likely DH's residency will count as working for a 501(c)(3), and he ideally wants to stay in academics.

The reason I am asking is because with IBR after 10 years of working for a a 501(c)(3) the balance of your loan is forgiven... and with looking at at least 7 years in residency that will most likely qualify as NFP we may consider entering IBR rather than forbearing and paying interest along the way). The only other issue is that we may need every cent of my income depending on where we end up, to live (rather than contributing 15% of my income to loan repayment).

[HouseofWool]

Be care with this. I can't remember exactly what E's employment status is, but he is not considered an "employee". It is something else. He gets all the same benefits (health insurance etc) as employees, but the status is different. This would definately affect IBR. He doesn't earn a salary, but a stipend.

[MarissaNicole]

Be care with this. I can't remember exactly what E's employment status is, but he is not considered an "employee". It is something else. He gets all the same benefits (health insurance etc) as employees, but the status is different. This would definately affect IBR. He doesn't earn a salary, but a stipend.

Ooh I didn't think of that although I just did some quick research and it appears not to change things:

Q: If I receive my pay in the form of a stipend, will my employment qualify for PSLF?
A: The determining factor for PSLF eligibility is whether you made each of the required 120 payments while you were employed full-time by a public service organization. The form of payment you received from the public service organization does not matter. (Q34 on pg 8 here)

[HouseofWool]

Ooh I didn't think of that although I just did some quick research and it appears not to change things:

Q: If I receive my pay in the form of a stipend, will my employment qualify for PSLF?
A: The determining factor for PSLF eligibility is whether you made each of the required 120 payments while you were employed full-time by a public service organization. The form of payment you received from the public service organization does not matter. (Q34 on pg 8 here)

That makes sense, but if he is not considered an employee, he is not employed. It is more like a teaching assistant status. Not an employee.

[moonlight]

Yes, this new program is a big help for most of us that have a resident in a nonprofit residency. For us, we should have 5 years towards the 10 year goal.

The one thing to remember is this only pays off Federal student loans, NOT private loans. Most of our loans are high interest and are private. Any little bit will help, but it's something to keep in mine.

My one last tip... go to the free info sessions at the hospital if the GME office offers them. We have monthly free sessions at the hospital, open to any resident, fellow, and spouses. Take advantage of all those resources. I can't tell you how much we've learned just by showing up to those.

[SuzySunshine]

This is a slippery slope - how do you know if your residency is for a non-profit? Anyway, there have been several lawsuits about resident's employment status: http://www.webcpa.com/news/IRS-Honor...s-53454-1.html

[Chrisada]

DH's school just had someone come in and talk to us about this for two hours. He said that if the hospital has residents, then it qualifies. DH also was a HS teacher for two years so that time will also count towards the 10 years. Most of DH's loans are federal, so we are excited about this new program. We will probably do IBR for at least part of residency just because the payments will be so low because we are a family of four.

[moonlight]

This is a slippery slope - how do you know if your residency is for a non-profit? Anyway, there have been several lawsuits about resident's employment status: http://www.webcpa.com/news/IRS-Honor...s-53454-1.html

At one of our meetings they suggested we look at the paycheck stub. As long as the check is from xzy nonprofit, city, county, state, or federal agency then we qualify. In our case DH works for a county hospital.

[oceanchild]

We are using ibr and hoping this nonprofit thing pans out. But we aren't counting on it. I don't think their definitions have been finalized yet.

[Deebs]

Hmm...we'll have to look into this. DH is with a group that staffs the non-profit hospital, which I'm sure doesn't count. BUT, he also works as a medical director for a fire department, which should count, and worked as a paramedic through M1. It looks like I have some research to do. This is the first time ever - our private loans actually have lower interest rates than our federal loans. This economy is CRAZY!

[moonlight]

We are using ibr and hoping this nonprofit thing pans out. But we aren't counting on it. I don't think their definitions have been finalized yet.

This is what we were told. The person talking said over and over 'this is very new, we need to see how it's going to work out. i can't tell you 100% if you do or do not qualify" Our GME person, on the other hand, was very willing to tell us that she knew with certainty that we do work for the county.

This is off topic:
I'm still worried about IBR. Our payments are $0 right now, and next year I'm sure it will be low again. BUT I’m really concerned about what will happen after we have a full year of income under our belt next tax filing year.

[MarissaNicole]

Okay I had a much longer answer but when I tried to post it I lost it. Basically "employee" is NOT defined by the employer but by the PSLF program. Go here for the Q/As.

Based on those answers I think most resident programs will qualify. I think we are going to consider it but with the mindset that if we get loan foregiveness it is great but we don't want to count on it. If we don't qualify at the very least we will have at least been making consistent payments toward our debt. Who knows where DH will end up working at the end of residency, therefore we may also be the reason we don't qualify.

I'm hoping we qualify, but I guess I am also weary as I realize the government may change things as the can do whatever they please.

[MarissaNicole]

This is what we were told. The person talking said over and over 'this is very new, we need to see how it's going to work out. i can't tell you 100% if you do or do not qualify" Our GME person, on the other hand, was very willing to tell us that she knew with certainty that we do work for the county.

This is off topic:
I'm still worried about IBR. Our payments are $0 right now, and next year I'm sure it will be low again. BUT I’m really concerned about what will happen after we have a full year of income under our belt next tax filing year.

Go to ibrinfo.org and use the calculator, it will give you a rough estimate of what next years payments will be.

[bokelley]

How can you find out which programs are not for profit?

[MarissaNicole]

How can you find out which programs are not for profit?

You can either search HERE

or go to the state's secretary of state website (state where programs is located) and they usually have a way you can check a corporation's status and it will specify if they are not for profit.

(Here is IL's SOS website)