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 simply thus goes that those finance that you had to possess med university had been such relatives, federal studies fund, and these were not 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 merely so goes that those funds which you had to possess med university was indeed such members of the family, federal degree financing, and they weren’t entitled to public-service financing 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.
Simply speaking, sure, the next thing is to complete an immediate federal combination. Immediately following one encounters, after that in that software, you’ll have to get a hold of a fees bundle, however, I’m assuming you already made the 120 payments. You don’t need to make any alot more money then you can have to approve your own work, fool around with an employment degree mode, immediately after which a few even more weeks going, and then you should be able to get the instantaneous income tax-free financing forgiveness.
Plus it merely so goes that people money you had having med university were these types of relatives, federal studies fund, 
that just weren’t eligible for 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.
Plus it merely so happens that those financing you had to possess med university was indeed such friends, government degree funds, and they were not qualified to receive public-service mortgage 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.”
Plus it only therefore happens that people fund you got getting med school was basically these types of family relations, government education loans, and they just weren’t eligible for 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.
Plus it just so happens that people money that you got to own med college were this type of loved ones, federal knowledge loans, and they were not eligible for 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.
Also it just therefore goes that people loans you got to have med university was indeed this type of members of the family, government studies finance, and these just weren’t qualified to receive public service loan 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?