Practically coincident for the most recent projected stop of federal education loan vacation in

Pete:
I know this is a long and confusing question, but frankly, I’m confused. And I’m wondering if you can shed some light on this. Thanks again for all your help. I appreciate everything you do.

Also it merely so happens that people finance that you had for med school was in fact this type of friends, federal knowledge finance, and these were not entitled to public service financing forgiveness

Dr. Jim Dahle:
Do we know about this, Andrew? Yes. We know about this. We’ve been talking about this for months.

Plus it simply so goes that those money that you had getting med school were these types of family members, government studies funds, that weren’t eligible for public-service mortgage forgiveness

Dr. Jim Dahle:
Yeah. So, give him the answer. What’s the scoop on this new PSLF waiver that goes through Halloween?

Andrew:
Yeah. Recently, this came out on e out and what this has done is it’s shaken up a lot of the world for public service loan forgiveness. And the reason why they’ve been able to do that is, in the event of a national emergency or war, essentially, the legislators can change up student loan law, albeit temporarily, which COVID has fit within that realm.

Andrew:
And so, essentially the payments that you have made, any payment, as long as you have qualifying employment should qualify. And you detailed one of the key steps is doing a direct federal consolidation. Because in the old rules, when you completed a consolidation, what it did is it erased all of your prior payment history. And we have run into this time and time again with so many clients that like you graduated med school in the 1990s or early 2000s.

Andrew:
Essentially, you got the short end of the stick, just because you borrowed before 2007, 2010, when a lot of the newer loans, these direct federal student loans, were starting to get issued.

Basically, sure, the next phase is to try to done a primary government consolidation. Immediately following you to definitely experiences, up coming through that app, you will need to find a cost package, but I am and when you already produced the brand new 120 money. You don’t need to make more repayments after which you are able to need certify your own a position, play with a work qualification means, then several significantly more weeks to go, and then you will be able to get the instantaneous income tax-free loan forgiveness.

And it also simply therefore goes that people financing which you got having med college was indeed these family members, government studies financing, and they just weren’t qualified to receive public-service loan forgiveness

Dr. Jim Dahle:
Yeah, it’s awesome. It’s basically been expanded this year. Even people that didn’t meet the requirements in the program, when the program was introduced, it just got a whole lot more lenient. And that was actually president Biden taking advantage of the COVID emergency to put some emergency rules in place. Take advantage if you can.

And it also only so happens that people financing that you had to own med college or university have been these loved ones, government studies loans, and they just weren’t qualified to receive public-service mortgage forgiveness

Dr. Jim Dahle:
All right. Our next question is from email, it’s actually a two-part question. The doc introduces it. “I’m an academic physician about two and a half years out from training, definitely pursuing PSLF with about 100 qualified payments to date.”

And it just so happens that those financing that you got to own med school was indeed these types of family members, federal studies fund, and they just weren’t eligible for public-service mortgage forgiveness

Dr. Jim Dahle:
He has two questions. The first one, “In addition to funding retirement and a six-month emergency fund, I’ve been saving a PSLF side fund in a high yield savings account. My PSLF side fund will equal my med school debt burden, which is now $325,000 with over $120,000 in interest on top of $200,000 in principle.

Plus it simply therefore happens that places to get loans near me people fund which you got getting med school were this type of friends, government degree finance, and these just weren’t qualified to receive public-service loan forgiveness

Dr. Jim Dahle:
I anticipate that at that time, my attending level monthly payments will be large enough to finally cover the accruing interest and that my debt won’t grow meaningfully in my final year, year and a half of qualified payments.

And it only very happens that those money that you got to have med college was basically such nearest and dearest, government training funds, that were not eligible for public service loan forgiveness

Dr. Jim Dahle:
What do you recommend I do with the side fund during that time? I know a high yield savings account is the most risk-averse option. Do I just leave it there earning less than 1%? The rest of my personal investments are in low-cost index funds. When would you start adding some of those PSLF side fund monies into index funds too?” Why don’t you give your take on this Andrew, and then I’ll give mine?