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  • PSLF vs taking new job

    Hello everyone. Long time lurker. Had an interesting situation come up the other day.
    I'm currently right at 60 payments into PSLF. I've been sending my loan provider the verification form annually and still on track. BUT, with coronavirus my hospital is struggling. I'm grossing around 250K right now. but this a private group in the next town over approached me the other day. We talked some numbers briefly. higher pay (base 275K) but the PSLF obviously disappears. There is much more potential for growth with the private group as they have a lot of pull with their referring network. I'd probably be busier, be making more money, and probably more stable than the current hospital (who has been operating in the red for years). My department in the hospital is one of the few that pays for itself and makes some money so I don't see them letting me go anytime soon (unless they just close up).

    Wondering about how people would approach this situation.
    1. stay with the hospital and plan on pslf
    2. move to the private world, try to make money and pay off the loan, get in early with their new surgical center, possibility for partner in 3 years, etc etc. This one hurts as I've planned on pslf for 5 years already and can simply make the minimum payments for the next 5 (obviously I haven't paid down my loans the last 5 either).

    anyone have any experience with a similar experience or a different viewpoint?

  • #2
    Need a lot more information. How much in loans do you have? It changes things if you got $10k in loans vs. $1M.

    What's a realistic compensation package look like for the private group?

    The biggest worry I would have is that your current hospital is in the red and has been for years.

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    • #3
      Originally posted by CordMcNally View Post
      Need a lot more information. How much in loans do you have? It changes things if you got $10k in loans vs. $1M.

      What's a realistic compensation package look like for the private group?

      The biggest worry I would have is that your current hospital is in the red and has been for years.
      Sorry was going to mention my loan details
      300k @ 6.8%. (currently repaye plan and paying about 1700/month)

      compensation package - 275k base, 55K in benefits (which I need to look into what all that entails. I know it includes health, dental, vision, 401K), 10k signing bonus,
      expectation 5K rvu.

      Yeah, the hospital is worrisome. they've slowly turned things around but this virus, I'm sure, is hurting the bottom line. I know my clinic has been slower.

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      • #4
        a 25 k salary difference not worth it if going to abandon PSLF.

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        • #5
          Originally posted by NumbNumb View Post
          a 25 k salary difference not worth it if going to abandon PSLF.
          I'm going to have to agree. i'd love to continue to make the minimum payment, invest what would be going to student loans to retirement/savings. Keep working where I am. BUT, I also know that PSLF is not a guaranteed thing.

          Simply wondering if anyone has gone through something similar and had a different opinion.

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          • #6
            Prior to Covid-19, I was not confident it was going to exist till my time 60 payments from now. But with the current environment, it is here to stay and possibly partial forgiveness in forseeable future without 120 payments.

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            • #7
              Originally posted by NumbNumb View Post
              But with the current environment, it is here to stay and possibly partial forgiveness in forseeable future without 120 payments.
              I don't know. With all the money they're giving out, giving out even more for student loans may not be popular. Do you have a source for partial forgiveness in the immediate future? I would almost guarantee if anything like that came to fruition there would be an income limit that 99% of practicing attendings would not qualify for...kind of like the stimulus checks.

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              • #8
                instead of forgiveness, it would be nice if they simply lowered the interest rates across the board. In today's world our interest rates are more egregious than the loan amounts.

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                • #9
                  What happens if your hospital closes in the next 5 years? Would you take the private job or find another pslf eligible job?

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                  • #10
                    Calculate your anticipated forgiveness value. Then compare this to your increase in salary. Quick estimate is you would need an additional ~50k per year towards your loans to make it close to equal. Another option would be to try to negotiate with private practice a sign on bonus or yearly payment towards your loans to make up the difference.

                    Also keep in mind your minimum 10 year standard payment would be well over 1700/month. So if you switched jobs and went into standard repayment plan you wouldn't see any of that extra 25k because it would mostly be going to student loans with no chance it will be payed off faster than 60months. (60 months to pay down 300k at 6.8 is >5500k/month

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                    • #11
                      The CARES act is also giving you 6 months of qualifying payments and zero interest for free. Depending on what your payment is that is essentially 15k or more of pre-tax salary going in to effect right now.

                      i would say the risks of your hospital closing or PSLF falling through are likely worth the 200k+ you are in track to have forgiven. That’s something like 250-300k in pre tax salary which you are not going to make up with a 25k raise. Keep in mind the private practice path also involves substantial debt one way or another when it comes time to buy in.

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                      • #12
                        Originally posted by TheDangerZone View Post
                        The CARES act is also giving you 6 months of qualifying payments and zero interest for free. Depending on what your payment is that is essentially 15k or more of pre-tax salary going in to effect right now.

                        i would say the risks of your hospital closing or PSLF falling through are likely worth the 200k+ you are in track to have forgiven. That’s something like 250-300k in pre tax salary which you are not going to make up with a 25k raise. Keep in mind the private practice path also involves substantial debt one way or another when it comes time to buy in.
                        Tell me how this CARES act works... no payments and they qualify toward PSLF?

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                        • #13
                          Originally posted by pierre View Post
                          What happens if your hospital closes in the next 5 years? Would you take the private job or find another pslf eligible job?
                          Each month that goes by, the incentive to stay with my hospital, or another eligible PSLF job increases. It's essentially worth 300K to me right now to stay put (60K a year for 5 years). Next year staying put will be worth approximately 75K/year. Then 100k/yr, then 150/yr, then 300K that last year.
                          5 years ago, this would have been a much more attractive offer... Now? not as much, I think. And it looks like the consensus here agrees.

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                          • #14
                            Originally posted by nogi View Post

                            Tell me how this CARES act works... no payments and they qualify toward PSLF?
                            https://www.whitecoatinvestor.com/fo...s-act-and-pslf

                            Comment


                            • #15
                              Holy smokes. Thank you.

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