Student Loan Mailbag Episode: Your Questions, Our Answers, Ep 36 cover art

Student Loan Mailbag Episode: Your Questions, Our Answers, Ep 36

Student Loan Mailbag Episode: Your Questions, Our Answers, Ep 36

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 If you’re wondering what’s really happening with Public Service Loan Forgiveness (PSLF), curious about creative strategies for paying down your loans, or stressed about how your med school debt might impact buying a home, we’ve got your back. This week, we’re breaking down the current state and future of Public Service Loan Forgiveness (PSLF), discussing student loan management strategies—including some lesser-known tactics—and sharing practical advice for navigating major life decisions, such as marriage and real estate, while carrying significant medical school debt. We wrap up with some solid insights into how debt-to-income ratios affect home purchases, and provide the latest guidance on disability insurance options for residents at top institutions, such as the Mayo Clinic. Whether you’re just starting med school, deep in residency, or well into your attending years, you won’t want to miss the practical tips and real-world scenarios packed into this insightful episode. Looking for help with Disability Insurance, Physician Banking, Student Loan Refinancing, Physician Mortgages, Contract Reviews, and more? Check out our "Best of the Best" sponsors page to find a list of the professionals Chad & Tyler team up with for their clients. You will want to hear this episode if you are interested in... [03:10] Current state of PSLF based on legislative updates as of July 2025.[05:32] Distinction between student loan repayment options (IBR, RAP) and discussion of potential changes.[11:09] Practical benefits and drawbacks of refinancing federal loans in small chunks.[15:37] Why your med school debt shouldn’t stop you from buying a home with your spouse.[19:32] How physicians can secure income protection with disability insurance. The Current State of PSLF for Incoming Interns Given all the buzz about Congressional reforms, we’re covering whether the Public Service Loan Forgiveness (PSLF) program is still accessible to the next generation of physicians. PSLF is not on the chopping block for anyone who is out of medical school. If you're an intern or a senior resident fellow attending, the rules for PSLF are fundamentally the same. If you’re an intern, resident, or attending, PSLF stays intact for existing borrowers. However, the fine print for income-driven repayment plans (such as IBR and the possible new ‘RAP’ plan) is still in flux. Stay alert for legislative updates, though—especially if you’re right at the beginning of your medical education. Final details are still emerging, with significant updates potentially rolling out in 2026. Nonetheless, for those starting training now, PSLF remains a safe and viable option. Should You Refinance Student Loans in Chunks? Another question in the mailbag is whether it’s savvy to take only a portion of federal debt ($30,000 at a time) into a private loan for better rates, while retaining more favorable federal protections for the remainder. The honest answer is that we both think this is unnecessarily complex for minimal upside. Federal loans can always be paid down aggressively, and moving smaller chunks into private loans means navigating possibly shifting interest rates, repetitive refinancing paperwork, and little real financial gain. In most real-world cases, the time, risk, and administrative hassle simply aren’t worth it, unless private rates are remarkably better (which, in 2024, they often aren’t). Refinancing federal student loans incrementally is more trouble than it’s worth for most physicians. Our advice is to assess your full financial picture and consider a clean, one-time refinance if private rates and circumstances are truly compelling. Debt, Marriage, and Physician Mortgages Most lenders only count the debt and income of applicants actually on the mortgage. Both partners don’t need to be on the loan, even if married. This means the non-indebted partner could be solely on the mortgage (with both still on the deed), sidestepping issues with student loan debt affecting loan approval. So the good news is that your med school debt needn’t tank your partner’s real estate dreams. Still, loan requirements change, so the best thing to do is to consult lenders who understand physician loan nuances, and remember you have flexibility as a couple. Disability Insurance—The GSI Advantage for Mayo Clinic Trainees Mayo Clinic incoming residents, listen up: You have exclusive access to Guaranteed Standard Issue (GSI) disability coverage. Your most valuable asset as a young doctor is your earning potential. The latest Milliman survey underscores the growing difficulty of getting fully underwritten disability insurance—over half of applicants face modifications or outright denials due to even minor health history blips. That’s where GSI plans (like those at all Mayo Clinic locations) are game-changers: They offer a strong monthly benefit, no invasive health checks, and a smooth process into higher coverage as your salary ...
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