Mostly coincident toward latest estimated end of the federal education loan visit to

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 only thus goes that people fund that you had for med school had been these types of family unit members, government training fund, and they just weren’t qualified to receive 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.

Therefore just therefore goes that people fund you got to have med college was basically these family unit members, government degree loans, that were not entitled to 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:
https://carolinapaydayloans.org/
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.

In a nutshell, sure, the next step would be to complete a primary federal integration. Once one encounters, next during that application, you’re going to have to pick a payment package, but I am whenever you currently produced the brand new 120 costs. You don’t have to make any more payments then you’ll be able to must certify the a job, fool around with an employment certification function, after which a couple of way more months to visit, and then you can receive the instant taxation-totally free mortgage forgiveness.

Also it merely so goes that those money which you got getting med school had been these relatives, federal degree money, and they were not qualified to receive public-service financing 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.

Also it merely thus happens that those finance which you had having med college or university was in fact these types of friends, government education financing, and they just weren’t qualified to receive public service financing 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.”

Also it simply therefore goes that people fund you had to own med school have been these types of family relations, government degree finance, that just weren’t entitled to public service loan 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.

And it just therefore happens that people fund you had to have med school was indeed these types of nearest and dearest, federal degree money, that were not qualified to receive public service mortgage 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.

Plus it only therefore happens that people funds you had for med college was basically such family unit members, federal knowledge finance, that weren’t qualified to receive public service financing 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?