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.

Therefore only thus happens that those funds that you had having med university was in fact these types of family members, federal education financing, that weren’t qualified to receive public-service mortgage forgiveness

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

And it also only so goes that those loans that you had to possess med school was in fact these types of family members, government degree funds, that just weren’t qualified to receive 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 step should be to over an immediate federal integration. Shortly after you to knowledge, following throughout that app, you will have to look for a cost plan, but I’m and in case you already made the 120 payments. You don’t have to make any a whole lot more costs after which you can easily have to approve their a job, play with a jobs certification function, immediately after which a couple of alot more months commit, and then you can have the immediate income tax-free financing forgiveness.

And it merely therefore happens that people funds which you got to possess med university was basically this type of nearest and dearest, federal training funds, and these weren’t entitled to 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.

Also it merely very happens that people fund you got to possess med university was in fact these types of loved ones, government knowledge financing, that were not entitled to 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.”

Therefore just thus happens that people funds that you got having med school was this type of household members, government education money, and they 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.

Therefore only thus goes that people money which you had having med school were such relatives, government training funds, that just weren’t entitled to public service financing 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 also merely therefore happens that people loans you got to possess med college was in fact such relatives, government education loans, and they weren’t eligible for public service mortgage 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 best payday loans take on this Andrew, and then I’ll give mine?