Student Loan Update After Supreme Court - with Mike Foley

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We’re back once more with Mike Foley, CFP, CSLP, to bring us another update on the student loan saga. Unfortunately that forgiveness isn’t going to happen, but there are a lot of other changes upcoming… including returning to payments! Mike lays it out for us:

What are the major updates?

  • Student loans are back on - interest returning in September, with payments likely resuming in October.

  • No Biden forgiveness.

    • But no impact to PSLF rules, either.

  • New PSLF rules are active.

  • No more interest capitalization when changing repayment plans or enrolling.

  • New “SAVE” plan.

    • Replacing the REPAYE

    • Lowers the monthly payment by changing the discretionary income calculation.

      • No unpaid interest!

      • Able to file taxes separately from spouse.

      • Weighted average calculatoion for undergraduate and graduate loans:

        • 5% for undergrad

        • 10% for graduate

    • Will start later this summer.

      • Those on REPAYE will automatically switch over to SAVE

      • Married borrowers can file separately — unsure if this will recalculate payment adversely for some married borrowers.

        • Some spouses with higher loan balances could see increase in payments.

  • PAYE and ICR programs going away.

    • Tough break for those going for long-term taxable forgiveness and have loans pre-2014.

    • Also tough for those with high incomes and just a few years away from PSLF.

  • New “On Ramp” program

    • No defaults until Sept. 2024 — interest will still accrue, though.

  • Losing out on REPAYE, and then switching to IBR or PAYE strategy:

    • Limited to just 5 years on REPAYE/SAVE to get interest subsidies before losing out on being able to switch to a plan that can be done in 20 years like the new IBR or PAYE.

    • Those who have loans pre-2014 — need to switch to PAYE or forever hold your peace!

What should we do before loans turn back on?

  • Update your contact info at student aid.gov and with your loan servicer.

  • Link your bank account to your new loan servicer — likely changed during COVID.

  • Check your payment amount due on your loan servicer website.

    • Don’t just automatically rectify your income — earliest you need to rectify if already enrolled in a program would be 6 months after payments resume — so you may be able to make payments still based on your 2019 income!

Any loopholes to look out for?

  • Are you unemployed during the summer between residency/fellowship and your job?

    • May be a good time to re-certify while you’re unemployed.

  • Are you looking to pay off your loans?

    • May want to consider reporting lower income for a few years while you can, to take advantage of interest subsidies through new SAVE program.

  • Did you work for a qualifying PSLF institution prior to med school while you had undergrad loans outstanding?

    • Potentially able to consolidate loans and get PSLF or IDR credits, if you complete before end of year.

Getting in touch:

More info:

Disclosure:

Michael is a comprehensive financial advisor who runs his practice out of Scottsdale, Arizona, under North Star Resource Group. Michael was trained at Duke University and holds his Certified Financial Planner designation alongside his Certified Student Loan Professional designation. Although Michael serves a diverse group of clients with their financial and student loan needs, with two physician parents, Michael has found a specialty in working with those in the healthcare space.  Michael is a registered representative and investment advisor representative of Securian Financial Services. Securities and investment advisory services offered through Securian Financial Services, Inc. Member FINRA/SIPC. North Star Resource Group is independently owned and operated. 6720 N Scottsdale Rd Ste 290, Scottsdale, AZ 85253. Financial Professionals do not provide tax or legal advice and this should not be considered as such. Please consult a tax or legal professional for advice regarding your specific situation.

SECURE Act 2.0: Financial Updates with Michael Foley

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Today we’re back again with Michael Foley, talking us through the new SECURE Act 2.0 as well as some new updates in disability insurance and student loan spaces.

Michael is a comprehensive financial advisor who runs his practice out of Scottsdale, Arizona, under North Star Resource Group. Michael was trained at Duke University and holds his Certified Financial Planner designation alongside his Certified Student Loan Professional designation. Although Michael serves a diverse group of clients with their financial and student loan needs, with two physician parents, Michael has found a specialty in working with those in the healthcare space. Michael is a registered representative and investment advisor representative of Securian Financial Services. Financial Professionals do not provide tax advice and this should not be considered as such. Please consult a tax professional for advice regarding your specific situation. Securities and investment advisory services offered through Securian Financial Services, Inc. Member FINRA/SIPC. North Star Resource Group is independently owned and operated. 6720 N Scottsdale Rd Ste 290, Scottsdale, AZ 85253.

You can schedule an initial consultation with Michael’s team at this link, or with their DI specialist, Hannah, at this link.

Updates in Student Loans, feat. Michael Foley

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We’re back once again with Michael Foley to talk updates in the student loan sphere on today’s #WellnessWednesday. We thank again the partnership from SMFM Thrive to make these podcasts possible!

Michael is a comprehensive financial advisor who runs his practice out of Scottsdale, Arizona, under North Star Resource Group. Michael was trained at Duke University and holds his Certified Financial Planner designation alongside his Certified Student Loan Professional designation. Although Michael serves a diverse group of clients with their financial and student loan needs, with two physician parents, Michael has found a specialty in working with those in the healthcare space.  Michael is a registered representative and investment advisor representative of Securian Financial Services. Securities and investment advisory services offered through Securian Financial Services, Inc. Member FINRA/SIPC. North Star Resource Group is independently owned and operated. 6720 N Scottsdale Rd Ste 290, Scottsdale, AZ 85253. “

Miss the PSLF Waiver? There may be another option after July 2023.

o   Must be employed at a qualifying employer at the time of your application for forgiveness though.

o   Can still get retroactive credit for periods of time with FFEL loans or while in certain period of forbearance/deferment.

o   Must consolidate prior to May 1st, 2023 though if there are FFEL loans involved.

New guidelines around PSLF qualifying month, starting July 2023

o   Things needed to get PSLF credit:

§  1. Working at a qualified employer,

§  2. making eligible payments,

§  3. for 120 months. These stay the same but the definitions of the first two have updates.

o   Eligible payment changes

§  Borrowers can now make retroactive payments to get credit for periods of time that they were in deferment or forbearance in the past and get them counted towards PSLF. Even periods of time where their payment would have been $0.

§  New consolidation rule: Weighted average of months.

·       Example: 1 loan 30k with 60 months combined with another loan with 30k with 0 months. New month count for consolidated loan will be 30 payments.

o   Changes to Qualifying employment

§  Flat 30hrs per week at a qualifying employer.

§  Allow qualifying employers to certify employment for a contractor if that individual is providing services that by State law cannot be filled or provided by an employee of that organization. Doctors at nonprofit hospitals in California and Texas.

Biden Forgiveness Update

Stuck in court after being struck down by a federal judge in Texas. Will likely be seen by the Federal Supreme Court which could take some time! Supreme Court will start the first oral hearings in February 2023. 

Forbearance period extension pushed out contingent on the court case:

·       Recertification dates extended

o   If falls 6mo after the loans turn back on, it will be pushed out by 1 year.  

·       Consult your CPA – a tax filing extension might be favorable on the student loan side of things if your 2021 income was lower than 2022.

Other meaningful updates in the Federal Student Loan space

Actions/Considerations:

1.     Don’t rule out the PSLF program even if you are a contractor with a hospital in CA or TX

2.     Consider consolidating any outstanding FFEL Loans prior to May 2023.

o   But be careful in consolidating all your loans (new weighted average rule).

3.     Don’t recertify income prematurely (given recertification extension)

o   Also, think before you file your taxes in the new year. Be sure to consult the CPA AND the student loan counselor if you made more in 2022 than in 2021. Potential for savings when payments do turn back on.

4.     Hold on changing repayment plans until after July 2023 if there is a lot of unpaid interest.

5.     Keep an eye on this court case- BUT remember that this is entirely separate from the PSLF program. Many are getting these confused.

6.     Be VERY careful with refinancing loans right now given the changes in the Federal space. Once you jump ship, you can never go back.

 

Additional Resources:

Bio: https://www.northstarfinancial.com/advisors/michael-foley/

https://www.ed.gov/news/press-releases/education-department-announces-permanent-improvements-public-service-loan-forgiveness-program-and-one-time-payment-count-adjustment-bring-borrowers-closer-forgiveness

https://www2.ed.gov/policy/highered/reg/hearulemaking/2021/futureofpslffactsheetfin.pdf?utm_content=&utm_medium=email&utm_name=&utm_source=govdelivery&utm_term=

Contact:

FoleyTeam@NorthStarFinancial.com

Like to schedule a review of your student loans?

  1. Please complete this BRIEF QUESTIONNAIRE (takes about 5 minutes).

  2. Please also send a copy of your Federal Student Loan data file from www.studentaid.gov (instructions at the top of the questionnaire). Email: FoleyTeam@northstarfinancial.com

  3. Scheduling link will be emailed following your completing the questionnaire.

 

 

Applying to Urogynecology / FPMRS, with Dr. Edward Kim

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We welcome back Dr. Edward Kim, an FPMRS fellow at the University of Pennsylvania, who’s talking with us today about how to apply for urogynecology fellowship!

Disclosures: We’re from a large academic institution. What we say may not apply to those from smaller programs or those from community programs! Please feel free to reach out to us though for other specifics or connections on advice.

  1. What is Urogynecology or FPMRS?

    1. Female pelvic medicine and reconstructive surgery

    2. We are a subspecialty of either Ob/Gyn or Urology that focuses on medical management, surgical management and research of women’s pelvic floor conditions. Vast majority of our surgeries are elective and outpatient or at the most overnight stays. Compared to other gyn surgical subspecialties like gyn onc or MIGS, there is very little inpatient care needs or consults. Our patient population is predominantly older patients with exceptions at institutions that do gender affirming surgeries, peripartum pelvic floor care, etc. Our research areas range from basic science to NIH-funded research network.

    3. Historically, the name FPMRS was created to replace or supplement the name urogynecology in order to relay that our scope of practice can go beyond urologic and gynecologic conditions. However, more recently, the name FPMRS is being re-discussed as the word female is not inclusive especially given that more of us are seeing gender diverse patients and perform gender affirming surgeries.

    4. Long story short, urogynecology and FPMRS are synonymous for the time being but it may evolve.

    5. In terms of the duration of training: For Ob/Gyns it’s a 3 year fellowship and for Urologists it’s a 2 year fellowship. For Ob/Gyns, these 3 years include 12 months of research, as it is for all ABOG certified subspecialties.

    6. Your training will cover a variety of pelvic floor conditions as defined by American Urogynecologic Society’s (AUGS) scope of practice:

      1. Urinary Incontinence

      2. Pelvic organ prolapse

      3. Voiding dysfunction

      4. Neurogenic bladder

      5. Urethral diverticula

      6. Vesico-vaginal and recto-vaginal fistulae

      7. Congenital anomalies of the pelvic floor

      8. Fecal incontinence

      9. Recurrent UTI

      10. IC/BPS

      11. Managing pelvic floor surgery complications and mesh complications

      12. And at some programs:

a)    Transgender care and gender affirming surgeries

b)    Peripartum pelvic floor care

c)     Pelvic pain

d)    Etc.

 

  1. Years I - II

    1. NOTE: Urogyn is EARLY application and EARLY match just like Urology. Urogyn timeline is thus a few months earlier than other Ob/Gyn subspecialties. Applications OPEN in NOVEMBER/DECEMBER and CLOSE by January of PGY3 year, interview in SPRING of PGY3 year and match by AUGUST of PGY4 year. So solidifying your interest in urogyn earlier in residency is beneficial.

    2. If you are at a residency with big urogyn presence and have fellowship. Typically you will rotate through or be exposed to urogyn as junior residents. If so,

      1. See what your attendings and fellows do. Talk to them about why they went into it. Do you like major and minor urogyn surgeries? How about the predominantly older patient population?

      2. See what kind of scholarly activities are happening in the division. Ask if you can be more involved with research. This will help you get “plugged in” with the division.

      3. Do well on CREOGs but not a huge deal until your third year. Show an upward trend if you can.

    3. If you are not at a residency with big urogyn presence

      1. Identify a local urogyn faculty or urogyn division.

      2. If your residency and host institution allow, do an away rotation. Try to impress them and get a great letter. Ideally, you should have at least one urogyn write a letter of recommendaiton for you.

      3. At the least, do scholarly work like a book chapter or full on research project.

    4. PGY2s should consider either:

      1. AUGS Resident Scholars Program that gives funding to attend AUGS meeting to network and be exposed to the greater urogyn world

      2. ABLE Scholar Travel Award that is similar to the resident scholars program but focused on residents from diverse backgrounds

      3. You can apply as a PGY3, but by the time you attend AUGS, your fellowship application process will already be in full swing. So try to go in PGY2 year to network if you can.

  2. Third Year

    1. Identify people that can write your letter of recommendation.

    2. Continue your research projects and other scholarly activities

    3. If you haven’t already, apply for either resident scholar programs that I mentioned

    4. Applications open in November/December!

      1. So in the summer/early fall time, look at AUGS’ listing of fellowship programs. Look at each program’s information. Make a list of programs you’d be interested in

      2. Sit down with your mentor/fellows and edit or add to the list

a)    Talk about: research heavy? Academic versus private after graduation? Specific niches like gender affirming care, basic science research, dual degree opportunities?

  1. Applications

    1. Overview: Applications open in November/December and close in January typically. Interview invitations will be sent out around February. Interviews are from March to June. With the match in August.

    2. In early fall of PGY3 year, update your CV and get the application material together.

    3. Write your personal statement and have your mentors review it. Help the readers understand why urogyn and what you want to accomplish in your career.

    4. Most programs will not review the application as soon as the application opens in Nov/Dec. Do submit on the earlier side because you don’t know what the process is like at your top choice programs. But don’t rush at the cost of making mistakes in your application.

    5. All programs will send out interview invites on a single designated day typically in February.

      1. Just like in residency, be prompt about responding to interview invites as to not end up on the waitlist.

  2. Interviews

    1. Back in our day for Nick Fei and I, we spent a lot of money on in-person interviews! Virtual interviews are wallet-friendly and schedule-friendly, but they are also exhausting! Allow yourself some breaks and downtime between interviews if you can and try to optimize the number of interviews you do.

    2. You all know this by this point in your career but:

      1. Do your homework on the program! Some programs have good information about their programs on their websites or on their AUGS program listing. Try not to ask questions that is reasonably evident lest you want to be seen as not interested in the program. Ask people you know about the programs. Networking at AUGS will come in handy.

      2. Know the program faculty and what their interests are

      3. Have a list of questions:

a)    Surgical modality breakdown: robotic, vaginal, laparoscopic, etc.

b)    What kinds of non-bread and butter urogyn things do they do? Gender affirming care, peripartum pelvic floor issues, etc.?

c)     What is their research year structure? One full year? Or 12 months broken up throughout?

d)    What kinds of research do their fellows do? Basic science? Clinical?

      1. For logistical questions like calls, transportations, try to save those for the fellows or perhaps the PD

    1. It’s hard to get a sense on virtual interview days but try to see if the division members seem friendly and collegial with one another.

    2. See if everyone in the division makes it to the interview. Programs that are vested in their fellowship will try very hard to pick a time and day that works for everyone, block out their ORs and clinics, etc.

  1. Rank Lists

    1. Make your rank list and seek feedback from your mentors. Think about geography and what you want in a program. 3 years is a long time and you will have a lot more free time in urogyn fellowship compared to residency or even other ob/gyn subspecialties! So being at a place that you can be with family, friends, or things you like doing are also something to consider.

    2. Be sure to reach out to a few programs that you really loved. You voluntarily telling your top choices that they are your top choices is not against the NRMP rules.

      1. Some programs do not write back at all.

      2. To really support your emails of interest; Ask your mentors to reach out on your behalf.

    3. It’s hard to know which programs want thank you emails or not. Try to lean on the side of doing them. Again, some program and interviewers will not write back. That’s okay!

Student Loans: The Saga Continues! An Update with Michael Foley.

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Two major updates

$10k or $20k forgiveness (Pell grant recipients)

  • Qualify if you make less than 125k single or 250k married

  • Likely what they already have on file for you- automatic or app coming in October

  • Is it going to be taxed?

    • Not federally but maybe in some states- check with your CPA

  • Is it going to be challenged legally?

    • Likely

    • Will take a long time to reach the Supreme Court

    • Also hard to sue without being able to show harm.

Forbearance extension through end of the year

  • No interest accrual or payments due

  • Also means the deadline for REFUNDs has been extended

  • Likely further extensions on Recertification dates.

Opportunities that have presented themselves with these extensions

Income reporting

  • Typically, must report income every 12 months – different during COVID

  • Paystubs or Most recently completed tax return

    • Presented opportunity to get on track for reporting your income from two years ago.

    • Some may be able to keep their incomes from 2019 for another year or more!

      • Huge for those seeking PSLF

      • Even helpful for folks paying down loans aggressively – REPAYE example- bulk payments.

      • Don’t forget about filing your taxes separately from your spouse and community property rules

PSLF Program and Waiver Action Items

  • Make sure all your loans qualify

  • Employer Certification form submitted to Mohela

  • Call current loan servicer and let them know you want to enroll in PSLF and move to Mohela

    • Don’t write this off even if you have a high income and not a lot left.

  • Income contingent repayment could be helpful for you

    • Lesser of 20% of income OR 12yr repayment times factor based off income (max 200%)

  • If you are unsure if you could qualify or not, request the refund of payments now

    • Worst case scenario, you pay that money right back towards your loans

    • Still no interest until January.

Proposals announced:

  • New repayment plan with a 5% discretionary income payment

    • Only for undergrad loans

  • Raising discretionary income amount to 225% instead of 150%\

  • No accrual of unpaid interest

Major takeaways

  • If you have Federal loans, everyone should be reassessing their gameplan. Lots of new strategies at play.

  • Don’t leave any money on the table.

  • Get your ducks in a row for PSLF even if there is a glimmer of possibility that you go for it.

  • Seek professional counsel on this by advisors trained on the Federal loan system. Let them help guide you through this.

    • This is not a simple system.

    • Lots of content going around that are either politically charged or financially charged that are offering tainted advice for borrowers – Beware!

Michael is a comprehensive financial advisor who runs his practice out of Scottsdale, Arizona, under North Star Resource Group. Michael was trained at Duke University and holds his Certified Financial Planner designation alongside his Certified Student Loan Professional designation. Although Michael serves a diverse group of clients with their financial and student loan needs, with two physician parents, Michael has found a specialty in working with those in the healthcare space. 

North Star Resource Group is independently owned and operated. 6720 N Scottsdale Rd Ste 290, Scottsdale, AZ 85253.

Separate from the financial plan and his role as financial planner, Michael may recommend the purchase of specific investment or insurance products or accounts. These product recommendations are not part of the financial plan and you are under no obligation to follow them. Financial Professionals do not provide specific tax/legal advice and this information should not be considered as such. You should always consult your tax/legal advisor regarding your own specific tax/legal situation.

To schedule an initial consultation with Michael click here.