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PSLF: 30 hours/wk but small stipend

Home Student Loan Management PSLF: 30 hours/wk but small stipend

  •  MedDirector 
    Participant
    Status: Resident
    Posts: 1
    Joined: 01/11/2019

    I’m considering serving as a medical director for a small non-profit agency. My responsibilities will meet or exceed 30 hours/week and this will be verifiable by the employer. However, I will only be receiving a nominal (~$5,000) salary/stipend. I am planning on working another job with a for-profit private group approximately 30 hours/week ($200k/year).

    I’d appreciate if anyone had thoughts on whether this scenario of small compensation by the non-profit and large(r) compensation by a for-profit would raise any red flags. I’m hoping that this wouldn’t be an issue since I seem to meet the hourly full-time requirements, but I wanted to ask since it is a slightly atypical situation given that it’s essentially a volunteer position given such a low salary.

    From my perspective, I would think that this follows the intent of PSLF. That is, I’m providing service to a non-profit for less than market rate, in exchange for loan forgiveness.

    THANKS in advance for any input!!

    #180572 Reply
    CordMcNally CordMcNally 
    Participant
    Status: Physician
    Posts: 1212
    Joined: 01/03/2017

    You’re going to be working over 1500 hours per year for a non-profit for $5k to try to qualify for PSLF? How many years are you planning on doing this and how much do you owe? This is an awful idea. Spend those hours collecting a physician wage and be done with your loans in a few years. Don’t try to save $0.30 by spending a $1.

    “But investing isn’t about beating others at their game. It’s about controlling yourself at your own game.”
    ― Benjamin Graham, The Intelligent Investor

    #180598 Reply
     Panscan 
    Participant
    Status: Resident
    Posts: 376
    Joined: 03/18/2017

    This is why I don’t like pslf because it makes people think about doing insane illogical things.

    Why not just work 60 hours a week, make 400k and crush your loans?

    #180616 Reply
    Liked by jfoxcpacfp
     ZZZ 
    Participant
    Status: Spouse
    Posts: 114
    Joined: 06/18/2018

    Why on earth would you work 30 hrs per week for a pittance when you have a large outstanding debt and have some sort of useful skill that someone else values at 200k per annum for the same work?

    I’d hope you wouldn’t qualify for loan forgiveness for that, but given that it’s a poorly crafted government program, you probably will.

    #180621 Reply
    jfoxcpacfp jfoxcpacfp 
    Moderator
    Status: Financial Advisor, Accountant, Small Business Owner
    Posts: 6382
    Joined: 01/09/2016

    You must work an average of 30 hours/wk or what your employer considers full-time work. I wouldn’t consider 30 hours/wk to be paid $5k/yr full-time work. I would consider it a donation of time that you can make because of your full-time work. Your employer has to verify that you qualify and this is very subjective. I would be uncomfortable with this plan and agree with others who recommend you put that time toward a for profit job and kill your debt.

    Johanna Fox Turner, CPA, CFP, Fox Wealth Mgmt & Fox CPAs ~ 270-247-0555
    https://fox-cpas.com/for-doctors-only/

    #180688 Reply

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