Not For Profit Status

[MarissaNicole]

So right now under the new Income Based Repayment plan if you work for a NFP or 501(c)3 corporation you can quailify for loan forgiveness after 10 years of payments and service.

Well it looks like in IL they are questioning the NFP status of a lot of hospitals:

See article here

It should be interesting to see what happens in Illinois and whether it spreads to other states - especially since it will impact a lot of us entering IBR.

[Sheherezade]

This so interesting to me. Thanks for following it closely for all our members. When DH was in residency, the big political issue was residents paying in to SS. DH just got a letter last week to join in a second class action suit from JHU residents trying to recoup SS withholding. The employment status of residents is one murky, murky pit.

[Thirteen]

So right now under the new Income Based Repayment plan if you work for a NFP or 501(c)3 corporation you can quailify for loan forgiveness after 10 years of payments and service.

Well it looks like in IL they are questioning the NFP status of a lot of hospitals... .

After looking at this, I am convinced that the only way to go (and even that is looking shaky) is through NHSC, getting approved at an HPSA site, and signing on that way. Although, who knows how long the funding, both state and federal wise, will be there?

[oceanchild]

I think IBR is a good deal even if you don't get the forgiveness. So we're using it and hoping the forgiveness comes through, but not counting on it. I don't think they've even published final rules as to what will qualify for forgiveness.

Although my guess is some hospitals (university-affiliated?) will continue to be non-profits no matter what happens.

[MarissaNicole]

I think IBR is a good deal even if you don't get the forgiveness. So we're using it and hoping the forgiveness comes through, but not counting on it. I don't think they've even published final rules as to what will qualify for forgiveness.

Us too.

Although my guess is some hospitals (university-affiliated?) will continue to be non-profits no matter what happens.

In Illinois - Rush and Northwestern's statuses are being challenged - those are two of the biggest university based hospitals in our state!


I am hoping that DH's residency will qualify because that is seven out of ten years right there, and then add on a fellowship, we'd practically be at the 10 year point!

[Deebs]

This is the latest tactic in Illinois to try to increase tax revenue. Hospitals that aren't going above and beyond in charity care, etc are going to get nailed. When the state is broke, they'll look for money anywhere.

Us too.

I am hoping that DH's residency will qualify because that is seven out of ten years right there, and then add on a fellowship, we'd practically be at the 10 year point!

I would be floored if it does. They always make it very, very clear that you are a STUDENT (even though you're not). That's why the challenge to paying into social security is there. As a resident you're basically in purgatory (in many, many ways). Not a student, not an employee. You don't have anywhere near the employment rights protection that true employees have (they don't have to show that everyone is held to the same standard, disciplined in the same way - no "paper trail" required for punishment), but you lose a lot of the protections / bonuses of being a student b/c you collect a *crappy* paycheck.

[MarissaNicole]

I would be floored if it does. They always make it very, very clear that you are a STUDENT (even though you're not). That's why the challenge to paying into social security is there. As a resident you're basically in purgatory (in many, many ways). Not a student, not an employee. You don't have anywhere near the employment rights protection that true employees have (they don't have to show that everyone is held to the same standard, disciplined in the same way - no "paper trail" required for punishment), but you lose a lot of the protections / bonuses of being a student b/c you collect a *crappy* paycheck.

As of RIGHT NOW - most residency programs do qualify because the only requirement is that your paycheck (stipend/salary) comes from a 501(c) it doesn't matter what your called or what your paycheck is classified as. The website specifically addresses that.

BUT I am skeptical as to whether it will stay this way, my guess is that they will change the qualifications/definitions over the next 10 years.