Tweet
The student loan refinancing model that I'm most familiar with is that of the imminently graduating resident physician with a W2 employee attending contract in hand. As a current resident, that may be the future situation for me, but I'm also looking into some private practice options which (to my understanding) may complicate the student loan refinance process. I was wondering if anyone with more knowledge on the topic than I would be able to shed some light on how refinancing would work in the 3 scenarios below:
1 - Graduating resident is joining a private practice as an associate with an initial contract with low base (guaranteed) pay, but a generous production based incentive structure (i.e. 100K base with 80% of all collections over 200K, hits 500K collections and gets 240K added to base for a gross of 340K)
2 - Graduating resident is buying an existing practice (i.e. last year practice had a gross of 900K with 50% overhead for a net of 450K, first year under new ownership business falls of a little and gross drops to 680K with continued 50% overhead for a net of 340K)
3 - Graduating resident starts their own private practice from scratch (i.e. practice grosses 500K first year out but startup costs and overhead are 80% for a net of 100K)
Basically, will any of these companies refinance you at a desirable attending interest rate without a guaranteed employee contract, or do you have to wait a year, submit your previous year's tax return and prove you're actually making money in private practice?
1 - Graduating resident is joining a private practice as an associate with an initial contract with low base (guaranteed) pay, but a generous production based incentive structure (i.e. 100K base with 80% of all collections over 200K, hits 500K collections and gets 240K added to base for a gross of 340K)
2 - Graduating resident is buying an existing practice (i.e. last year practice had a gross of 900K with 50% overhead for a net of 450K, first year under new ownership business falls of a little and gross drops to 680K with continued 50% overhead for a net of 340K)
3 - Graduating resident starts their own private practice from scratch (i.e. practice grosses 500K first year out but startup costs and overhead are 80% for a net of 100K)
Basically, will any of these companies refinance you at a desirable attending interest rate without a guaranteed employee contract, or do you have to wait a year, submit your previous year's tax return and prove you're actually making money in private practice?
Comment