Medical school loans have been overhauled by the federal government and lending agencies, but many aspects remain confusing. “Medical school is one of the most demanding paths a person can choose, but it’s not just the coursework that challenges future doctors,” explains Joy Sorensen Navarre, president of Navigate Student Loans. “It’s also the staggering debt they face, as well as the seemingly endless blockade of challenges to pay down their debt.”

As part of PracticeLink’s extensive physician resource center, we love working with Joy and her team at Navigate for help answering questions about repaying medical student loans. 

Here are answers to four recent questions from physicians and providers we hope will shed light on common concerns about medical school debt. 

When I try to apply for an income driven repayment plan, the Federal Student Aid website tells me my loans are ineligible. Is this true?

Assuming it is true, let’s explore why. If you are a recent graduate, one reason could be your school might not yet have informed the National Student Loan Data System (NSLDS) you have graduated. While direct federal loans are eligible to be paid via income driven repayment (IDR) plans, the process starts with your school. Contact your school’s bursar or financial services to make sure they have informed the NSLDS you have graduated. 

Of course, the Federal Student Aid website might have incorrectly indicated your loan as ineligible because of a technical error. Recently many borrowers have reported this happening when they attempted to apply for an IDR. The FSA is working to resolve the issue. When this occurs, sign out and give it some time. It is typically resolved within 30 days. 

I am currently on the SAVE plan, but I am not currently making payments. Is there something wrong?

The SAVE plan, which is a type of income driven repayment plan, has been paused since July 2024 due to court litigation. As a result, borrowers on this plan have been put on administrative forbearance while the court case plays out and will not have to make payments during this time. Unfortunately, this time in forbearance will not count toward PSLF as some previous ones were, such as during the COVID forbearance. As of October 2024, according to the Department of Education, the earliest expected time for payments to resume would be April of 2025.

Additionally, the Department of Education recently announced regulatory action to reopen the Pay As You Earn repayment plan and the Income Contingent repayment plan to new enrollees on December 16, 2024. Updates are posted online at studentaid.gov. 

How often do I need to submit my PSLF verification form?

PSLF verification forms should be submitted to your employer once a year. Doing so ensures you have an accurate count of your payments and allows you to verify your employer is still a qualifying organization. It is not uncommon for nonprofit healthcare organizations to lose their tax-exempt status. For instance, if a nonprofit hospital merges with a for-profit system, the nonprofit status is lost. This happened in early 2024 when Asheville, NC’s Mission Health Hospital merged with Hospital Corporation of America (HCA).

More commonly, this can happen if a healthcare system fails to meet the requirements of Section 501(r), causing its tax-exempt status to be revoked. As a physician, you could think you’re making payments toward PSLF but while they do help pay down your debt, the organization’s loss of tax-exempt status could make you lose months toward loan forgiveness.

It is also important to fill out the form after leaving an employer to account for any months between the date you leave and your last submission. Keep in mind, the time you’re not working between jobs will not count toward loan forgiveness.

Is it possible for my private loans to be forgiven via PSLF?

No. Because PSLF is a federal program, it is not possible for loan forgiveness to be achieved if your student loans are held privately. The good news is many employers provide medical student loan assistance on a case-by-case basis. As you explore job opportunities on PracticeLink.com, look under the Benefits section of each post. If you have additional questions, most posts in include the name and contact information of the recruiter. Feel free to reach out to them directly with questions.

If you have additional queries about medical school loan repayment options, visit Navigate Student Loans for a free consultation.  To explore more physician-related topics, such as contract negotiations, quality of life and physician compensation, visit PracticeLink’s Resource Center at PracticeLink.com/resource-center.