We just had a new student loan announcement, and wanted to sum it up for all of our doctors. This will be affecting some of you differently this time around.
Debt Cancellation
This has been blocked and is being brought to the Supreme Court. This will be deliberated on in February 2023. The result of this block is an extension of forbearance.
Forbearance
This pause has been extended once again, but the expiration of this has two different date options.
Either repayment begins:
60 days following an official court ruling.
Or
After August 30th 2023 if unresolved by June 30th 2023.
What does this mean for you?
This is great for those utilizing PSLF. Not so great if you’re a resident or fellow counting on the debt cancellation.
What should you do as we wait for a ruling?
Wait to refinance your student loans.
The application for debt cancellation is currently closed, but you can still sign up for email updates from FSA.gov which will give you accurate information as it comes out.
Brace for the outcome of debt cancellation being torpedoed, and have a contingency plan for your loan repayment. Set aside some funds for the purpose of repayment. Worst case: you use it for student loan repayment. Best case: you now have bonus money that you can use on something else important to you!
If you need help with any of this information or are looking for more advice, please reach out to us.
CONTACT US
1-888-256-6855
Josh Lantz, CRPC®, CIO and Financial Advisor at MD Financial works diligently with all our teams to coordinate the services we provide for our clients. He wants to make sure all our clients have sound, fiscally responsible, financial plans and feel more comfortable about their future. He can be reached at Josh@mdfinancialadvisors.com.