A Guide for PGY-2+ Residents

Mastering the Training Years?
‍Once you’re a year or more into training, you’ve likely already made some initial choices about repayment—but the real work of staying on track is just beginning. The information you were once told may have already changed multiple times, and it’s important to make sure your plan reflects the latest rules. This stage is about confirming your payments are being counted correctly, planning around recertification dates, and adjusting your strategy as your income changes. With major program updates expected in the coming years, now is the time to double-check your progress, avoid common pitfalls, and make sure you’re building toward forgiveness (or a clear payoff strategy) the right way.

You can use the self-help information below to review your loans on your own, or schedule with us—we offer two complimentary one-on-one loan meetings to make sure everything is set up correctly.

Step 1: File a Tax Return for your Final Year of Medical School

If you haven’t already, file a federal tax return for the last full calendar year you were in medical school. Even if you had very little income, filing a return is important.

Why this matters:Your tax return will be used to calculate your student loan payments when you apply for income-driven repayment. Using a low-income year (like your final year of med school) can lock in a $0 or low monthly payment for up to 12 months. If you didn’t file, you’ll be asked for current income documentation (like pay stubs), which will reflect your resident salary and result in much higher payments.

‍Not sure if you filed correctly or on time? We’ll walk you through how to check and fix it if needed.

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Step 2: Consolidate Your Loans to Skip the Grace Period

After graduation, most federal loans enter a six-month grace period before repayment begins. But grace periods don’t count toward forgiveness programs like PSLF.

By consolidating your loans shortly after graduation: You skip the grace period. You become eligible to enroll in an income-driven repayment plan immediately. You can begin tracking qualifying payments sooner if your job qualifies for PSLF.

‍We’ll help you decide if you should consolidate and assist with the process. Book your session today.

Get Additional Details

Step 3: Apply for Income-Driven Repayment (IDR) – New IBR

With other IDR plans being phased out, most new borrowers will use the newest version of the Income-Based Repayment (IBR) plan. This plan lets you make payments based on your income and family size, and if you work in nonprofit or public service roles, your remaining balance may be forgiven after 120 qualifying payments.
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To apply: Visit StudentAid.govSubmit the Income-Driven Repayment application. Upload your tax return when prompted (or pay stubs if you didn’t file)
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If you’re married and want to exclude your spouse’s income, you must file your taxes separately.
This process is confusing for a lot of new residents. We’ll walk you through it step-by-step.

Get Link - Update Employer Certification

Step 4: Submit Your First PSLF Form

If your residency is at a nonprofit hospital, your employment likely qualifies for Public Service Loan Forgiveness. Submitting the PSLF Employer Certification Form is how you start tracking eligible payments.
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To submit your form:Use the PSLF Help Tool at StudentAid.gov to complete your portionAsk your hospital’s HR or payroll office to complete their sectionSubmit the form through the site or by mail
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You can view your hospital’s specific PSLF instructions, including where to send your form and who to contact, by visiting the dedicated hospital resource page we’ve created.
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Want to make sure your employer qualifies or you’re filling the form out correctly? We can check it with you during your session.

Access The PSLF Help Tool

Step 5: Set a Reminder to Recertify Annually

Each year, you’ll need to recertify your income to remain in your IDR plan and continue tracking PSLF progress. We’ll walk you through that when the time comes.

Step 1: Make Sure You're Enrolled in the Right Repayment Plan

With other plans going away, most borrowers are being moved into the new version of Income-Based Repayment (IBR). If you haven’t manually applied for this plan, your servicer may still show you in a plan that doesn’t qualify for forgiveness.
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What to do:Log in to StudentAid.gov and review your current repayment planIf it’s not “Income-Based Repayment” or “IBR,” submit a new IDR application and select IBRUpload your most recent tax return when prompted
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If you’re unsure whether your plan qualifies or need help applying, schedule a session with us and we’ll walk you through it.

‍Get a Breakdown from Bart Singleton, RICP

Step 2: Know When You Last Recertified—and Plan Ahead

Many residents are showing recertification dates pushed into 2026 or beyond—but that may not stick. Once the government finalizes the shift to IBR, you may be asked to recertify sooner. That could significantly increase your monthly payments if you’ve had any income growth.
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What to do: Check your recertification date in your loan dashboard. If your income has increased, consider filing a tax extension next year to preserve a lower income record. Set a calendar reminder to review your situation with us at least 2–3 months before your recertification is due
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We can help you plan ahead so your payments stay as low as possible.

Enroll in a Plan

Step 3: Make Sure You're Getting Credit Toward PSLF (If Eligible)

Change Your Plan

Step 4: Understand the Tradeoff Between Forgiveness vs Paying It Off

Need more guidance? Talk to us.

Step 5: Keep Track of Your Loan History and Employement Certs

Each year, you’ll need to recertify your income to remain in your IDR plan and continue tracking PSLF progress. We’ll walk you through that when the time comes.

Need more guidance? Talk to us.

Step 1 Review Your Current Repayment Plan

Most residents were set up on an income-driven plan at the start of training, but many haven’t checked back since. Some are still sitting in SAVE forbearance—which doesn’t count toward PSLF and continues to accrue interest—while others have been placed into Standard Repayment with very high payments. Making sure you’re in the right IDR plan (IBR, PAYE while it lasts, or ICR in limited cases) is key to keeping payments manageable and ensuring your time in training counts.

What to do:
‍Log into StudentAid.gov and review your repayment plan.
Check your plan type, recertification date, and processing status.
If you’re unsure what plan you’re in—or whether it’s giving you PSLF credit—schedule with us and we’ll walk through it together.

Need Help Getting Started? We Offer Two Free One-On-One Meetings To Walk You Through Your Best Next Steps. Click Here To Book.

Step 2 Understand How Your Income Affects Payments

Your monthly payment under an income-driven plan is based on how your income is documented—and that number isn’t always as straightforward as it looks. A tax return may reflect last year’s income, which could be lower than what you’re earning now. Pay stubs often include moonlighting or extra shifts that aren’t guaranteed. Sometimes an employer letter is the cleanest option because it shows only your base salary.
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The timing of when you file taxes and when you recertify can also affect which income year your servicer uses. Being thoughtful about both documentation and timing helps keep your payments affordable and protects PSLF progress. With major program changes coming in 2026, understanding these details now can save you tens of thousands of dollars over the course of training.

Enroll In A Plan

Step 3 Clarify Your PSLF Eligibility (If Applicable)

Public Service Loan Forgiveness (PSLF) can wipe out your remaining balance after 120 qualifying months—but not all loans and repayment plans count. Residents often assume they’re earning credit automatically, but that’s not always the case. Direct Loans in an income-driven plan (IBR, PAYE, ICR, or sometimes Standard Repayment) can qualify, but months in SAVE forbearance do not.

What to do:
‍Use the PSLF Help Tool at StudentAid.gov to confirm your employer is PSLF-eligible.
Submit a PSLF Employment Certification Form each year or whenever you change jobs.
Verify your loans are Direct Loans; older FFEL or Perkins loans may need consolidation.
Find your hospital in the search tool above to see specific directions for collecting PSLF credit while working there.

Getting this right early in training ensures you don’t lose valuable months—and keeps you on track for forgiveness down the road.

Checking PSLF Credit Progress

Step 4 Explore Payoff vs. Forgiveness Scenarios

PSLF isn’t the right path for everyone. Some attending physicians may be better off accelerating payoff and moving on. We’ll help you weigh your options clearly and confidently.
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What we’ll help you with: Comparing total cost of PSLF vs. direct payoff. Exploring whether refinancing could help (only if appropriate). Designing a payment strategy that fits your goals and cash flow
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Whether you’re leaning toward forgiveness or focused on paying it off, we’ll help you make the most informed decision.

Need More Guidance? Talk To Us.

A Guide for PGY-2+ Residents

If you are a part of a non-profit hospital program - you qualify for student loan forgiveness.

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