Hi John
When I looked at this, it appeared that in order to be eligible for loan forgiveness, someone would have to work for a qualifying employer while making 120 qualifying monthly payments, so that would be at least 10 years before any benefit. That doesn't seem like something that would tip the scales very far, especially considering the poor track record of actually forgiving loans thus far.
I also thought that it's common for hospitals to have their physician employment in a for profit subsidiary, which I don't think would be eligible.
We haven't had anyone bring this up.
Dave
------------------------------
David Smith FACMPE
Executive Director
United Imaging Consultants
Mission KS
(785) 393-8387
------------------------------
Original Message:
Sent: 08-17-2022 13:59
From: John Pugh
Subject: Loan forgiveness incentive for hospitals
You're correct, Keith, in that it's been around for a long time. However, there were recent modifications that make it easier to obtain loan forgiveness. Here's what we're looking at:
"A limited PSLF waiver that allows all payments by student borrowers to count toward PSLF, regardless of loan program or payment plan. This waiver will allow student borrowers to count all payments made on loans from the Federal Family Education Loan (FFEL) Program or Perkins Loan Program. It will also waive restrictions on the type of repayment plan and the requirement that payments be made in the full amount and on-time for all borrowers. To receive these benefits, borrowers will have to submit a PSLF form by October 31, 2022, which is a single application used to certify employment and evaluate a borrower for forgiveness."
This could mean that after October 31, 2022 it will become less of a factor but right now it's impacting some employment decisions.
John
Original Message:
Sent: 8/17/2022 9:44:00 AM
From: Keith Chew
Subject: RE: Loan forgiveness incentive for hospitals
John. This program has been in existence under one form or other for decades so I'm not certain it is having a greater impact today than it did when I accessed it back in the 1980's.
Sent from my Verizon, Samsung Galaxy smartphone
Original Message:
Sent: 8/17/2022 9:21:00 AM
From: John Pugh
Subject: Loan forgiveness incentive for hospitals
We recently became aware of the federal Public Service Loan Forgiveness (PSLF) program whereby doctors entering the workforce with large student loans can obtain loan forgiveness provided they work for a qualifying employer and pay their loan for 10 years. We are finding that the promise of loan forgiveness is pushing qualified physicians away from private practice toward employment by hospitals that meet the requirement, which basically includes any hospital that is a non-profit organization.
Have others in the radiology practice realm seen situations where private practices are losing candidates to hospitals for this reason?
John
---
John E. Pugh
P: 609.644.4479
F: 609.503.2476
