Student Loan Updates for Doctors
As a new year starts, here are some new updates for those of you who have student loans. We’re going to break this update into a couple categories: student loans that are under the Public Service Loan Forgiveness (PSLF) program and student loans that need to be refinanced. As you may have heard, the pause on student loan repayment has been extended until September 2021. This means that any federal loans will not gain interest and payments are not required.
Those of you who are in PSLF programs, you know that there are 120 payments that you must make as a doctor who works for a not-for-profit hospital. Well, we have great news for you:
You don’t need to make payments right now
There is 0% interest during this period
THE BEST NEWS: These upcoming months count towards PSLF payments
** There is a caveat to this: This news hasn’t been shared on the Department of Education’s website yet, but in our last update they didn’t put out this information right away either. **
Our second category for today’s update is for those of you considering refinancing your public student loans. You should pause for the time being. With public student loans having 0% interest right now it doesn’t make sense in most cases to refinance at this moment. Now would be a good time to talk to your Financial Advisor on whether you should continue to make payments towards your public student loans while they aren't accruing interest. You may want to consider putting those funds towards higher interest debt or saving for your long-term goals.
If you currently do not have any public student loans, but you have private students loans that don’t qualify for this special extension reach out to us at info@mdfinancialadvisors.com. We can help you get started on refinancing those loans to capitalize on the extremely low interest rates that are currently available.
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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.