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Welcome to the official second episode of Physician Cents! We are excited to build on the great news from a few weeks ago. This article will walk you through essential topics that are highly relevant to all physicians, particularly those who are just starting their intern year. Hosted by Chad Chubb and Tyler Olson, we will cover federal student loan management, the new SAVE plan, private student loans, and much more. Buckle up, as we deep-dive into crucial financial management tips that are tailored for physicians.
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Understanding the timelines and deadlines in federal student loan management is critical for optimizing your repayment strategy. Here are some key dates you need to be aware of:
The IDR waiver deadline is a once-in-a-lifetime opportunity for those with medical school loans. By consolidating your existing medical school loans with undergraduate or other graduate loans, you can apply non-profit work years towards your loan payments. If you have full-time non-profit work experience, wrap up your consolidation paperwork before this deadline to take advantage of this significant financial benefit.
The Pay As You Earn (PAYE) plan serves as a crucial repayment option for many physicians. The deadline to enroll in this plan is June 30th. While the new Income-Driven Repayment Plan (SAVE) looks promising, PAYE offers its own set of advantages, particularly for certain borrowers. More on this later.
The new SAVE plan introduces a dual-rate system: 5% of your disposable income for undergraduate loans and 10% for graduate loans. This proportional approach can significantly impact your repayment, providing a possible reduction in your monthly payment. Keep a lookout for this change starting July 1st.
Many physicians have already seen adjustments under the IDR waiver, but others are still waiting. This one-time adjustment can dramatically reduce your loan balance based on your payment history. Those who see this adjustment will have the chance to potentially see their loans get significantly reduced or even forgiven. If your records are in good standing, anticipate some action by July 1st.
The SAVE plan offers some exciting new features that make federal student loan repayment more manageable. Here’s an in-depth look:
While the SAVE plan offers many benefits, it might not be the best fit for certain high-income physicians. Specifically:
For those holding private student loans, navigating the repayment process comes with its set of challenges. Here's how you can make the most of it:
Whether it’s disability provisions or death clauses, always read the fine print. Know what happens to your loan obligations if you become disabled or in the unfortunate event of death. This will help you plan accordingly and ensure you and your loved ones are protected.
Refinancing can be a smart move, especially if you can secure a lower interest rate. Some residency-specific programs, like Earnest, offer beneficial terms for physicians:
Navigating student loans can be daunting, but understanding the different plans and their specific benefits can put you ahead in your financial planning journey. Whether it's taking advantage of the IDR waiver or exploring the new SAVE plan, being well-informed is the key to making sound financial decisions. Make sure to also consider the implications of private loans and co-signing liabilities. Stay tuned for our next episode, where we'll dive into emergency funds and disability insurance, two critical components of financial planning for physicians.
Thank you for joining us on this financial journey. Be sure to send in your questions. We'll catch you on the next episode!
The best of the best list is a paid sponsorship, but these are professionals/companies that Tyler and Chad collaborate with within their own practices or have been vetted to earn a spot this list. By supporting our sponsors, it allows Chad & Tyler to dedicate more time to you and the Physician Cents community. If you ever have a question (or not a great experience, which we don’t expect!) about a sponsor, please let us know. We call it the “best of the best” for a reason, and we will maintain that standard for our listeners & viewers.
This information is for general purposes only. This information is not intended to be a substitute for specific professional financial, tax, or legal advice, as individual circumstances vary. Please see a financial professional, CPA, and/or an attorney in regards to your own individual situation.
Wealthkeel’s Advisory Services and Financial Planning offered through Vicus Capital, Inc., a Federally Registered Investment Advisor. WealthKeel LLC, 615 Channelside Drive, Suite 207, Tampa, FL 33602 -- 267.590.9533.
Olson Consulting LLC, Offering Advisory Services and Financial Planning, is a State-Registered Investment Advisor.
A podcast designed specifically for physicians, offering a breakdown of complex financial topics to help you develop your financial IQ, further your financial journey, and improve your well-being. Whether you're a medical student, resident, fellow, or attending physician, you're sure to learn something new that will benefit your journey.
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