1 Physician LOAN FORGIVENESS and REPAYMENT
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3 ROAD MAP: Re-frame the Student Loan conversationPublic Service Loan Forgiveness Get candidates to YES faster Support retention Options for For-Profit Employers Joy, please add any additional information you’d like included.
4 84% of new have student loan debt Medical GraduatesSource: 2014 https://www.aamc.org/download/152968/data/debtfactcard.pdf Source: 2014 https://www.aamc.org/download/152968/data/debtfactcard.pdf
5 $100,000? $50,000? $693,000
6 Financial pressure Interest $344,739 $300,000 education debtMonthly payments of $3,506 Extended plan payments $2,149 Interest $344,739 Joy, please add any additional information you’d like included.
7 Impact on physicians Symptoms of depressionDelay marriage, childbearing, major purchases Regret choosing family medicine Pursue different career opportunities Joy, please add any additional information you’d like included.
8 Signing bonuses Loan repayment offers Higher salariesFinancial support Trends: Signing bonuses Loan repayment offers Higher salaries Joy, please add any additional information you’d like included.
9 46% Feel Burned Out OF PHYSICIANSSource: The 2015 Medscape Physician Lifestyle Report Source: The 2015 Medscape Physician Lifestyle Report
10 Top factors influencing burnout:Too many bureaucratic tasks Long hours at work Insufficient income Source: The 2015 Medscape Physician Lifestyle Report Source: The 2015 Medscape Physician Lifestyle Report
11 RE-FRAME the conversationSource: The 2015 Medscape Physician Lifestyle Report Source: The 2015 Medscape Physician Lifestyle Report
12 PUBLIC SERVICE LOAN FORGIVENESSCreated by Congress in 2007 10 years of payments Tax-free forgiveness Source: U.S. Department of Education. See for details. Source: U.S. Department of Education. See for details.
13 THREE QUALIFYING FACTORSQualifying loans: FEDERAL only Eligible repayment plan Non-profit or public employer Source: U.S. Department of Education. See for details. Source: U.S. Department of Education. See for details.
14 Dr. Susan’s Problem Original loan amount $ 275,000Standard Original loan amount $ 275,000 Monthly payment $3,130 Principal - interest paid $375,548 Total debt forgiven $0 Years until debt relief 10 Walk through the example
15 Dr. Susan’s Solution Original loan amount $275,000 $275,000Standard PAYE Original loan amount $275, $275,000 Monthly payment $3, $325 to $1,624 Principal - interest paid $375, $162,121 Total debt forgiven $0 $310,266 Years until debt relief Walk through the example
16 PSLF Checklist I have federal Direct loans Yes NoMy loan balance is higher than my current salary I plan to work for a nonprofit or public hospital
17 Private refinance? Rates? Terms? Other factorsSource: “The Hidden Costs of Declining Physician Engagement”, Dr. Dan Smith
18 Refinance example Lower payments by $540 Save $65,000 overall($300k at 7.15% vs 3.5% for 10 years) Source: “The Hidden Costs of Declining Physician Engagement”, Dr. Dan Smith
19 lenders www.credible.com Sofi, DRB, others Local BankSource: “The Hidden Costs of Declining Physician Engagement”, Dr. Dan Smith
20 What’s the Catch? “Our great struggle in medicine these days is not just with ignorance and uncertainty. It’s also with complexity: how much you have to keep in your head to think about.” --Atul Gawande
21 Getting Advice White Coat Investor forum Loan servicing companyAttorneys, financial advisors Independent advisors Fee expectations
22 Simple Solutions EDUCATE! thru presentations, webinars, articles$1 Million Dollar Challenge Student loan advice
23 THE RESULTS 17 of 20 offers acceptedFilled 75% more positions this year Reduced loan retention $$ Second opinions saved $40k-$400k
24 USING NATIONAL AVERAGES increase in net revenue to organization5% USING NATIONAL AVERAGES REDUCTION IN TIME-TO-FILL RESULTS IN A $973,863 increase in net revenue to organization Source: $1.4mil, 222 days to fill, 24 searches. Source:
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26 Resources Research on Family Medicine and Student Debt: Julie Phillips, MD, MPH, Michigan State University, Calculating the value of reduced time to recruit: Federal student loan repayment: Employment Certification Form for Public Service Loan Forgiveness: https://studentaid.ed.gov/sa/sites/default/files/public-service-employment-certification-form.pdf National Health Service Corps: Private loan refinance:
27 Additional Questions? Contact Joy Sorensen NavarreDISCUSSION Additional Questions? Contact Joy Sorensen Navarre Phone: (612) |