I have been offered a forgivable loan as form of signing bonus out of residency (i.e. the equivalent of 15% of one year's base salary).
Is this worth it and should I be aware of any pitfalls? And is this common?
My understanding is that I will receive an up front amount of the loan (taxable as income for this year) and that the loan will be forgiven 20%/year. After 5 years with the group, I will have nothing to pay back. If I leave early, I will be responsible for repaying the "unforgiven" percentage (such as 60% of the loan if I leave at 2 years with 3 years remaining).
Thanks in advance.
Is this worth it and should I be aware of any pitfalls? And is this common?
My understanding is that I will receive an up front amount of the loan (taxable as income for this year) and that the loan will be forgiven 20%/year. After 5 years with the group, I will have nothing to pay back. If I leave early, I will be responsible for repaying the "unforgiven" percentage (such as 60% of the loan if I leave at 2 years with 3 years remaining).
Thanks in advance.
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