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Is it possible to qualify for PSLF while still working in private sector?

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  • Is it possible to qualify for PSLF while still working in private sector?

    Was curious if anyone knows or has seen strategies for docs who work at a for-profit group (PP, Kaiser, etc) to still find a way to qualify for PSLF? I am in my last year of residency and am enrolled in REPAYE on the PSLF path, and don't want to miss out on the 5 years of qualifying payments I will have put in by the end this year.

    One of the jobs I am looking at (and like very much) is with Kaiser, which would not appear to qualify for PSLF as the Kaiser medical group is for profit. I was curious if anyone has gone down a similar path and either worked a separate side job (medical or otherwise) at a non profit (I believe requirement is 30 hrs/wk) in order to qualify for PSLF, or found a different way. For example, wouldn't it be possible to found, organize and work 30 hrs/week at your own PSLF approved non-profit in addition to a non-PSLF day job and still qualify? Or maybe there is an alternate path? Am wondering if this is possible or just a pipe dream.

  • #2
    Correct, you can still qualify if you work for a for profit assuming you meet the minimum requirements of working for a non profit.

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    • #3
      Originally posted by Ear Wax Technician View Post
      Was curious if anyone knows or has seen strategies for docs who work at a for-profit group (PP, Kaiser, etc) to still find a way to qualify for PSLF? I am in my last year of residency and am enrolled in REPAYE on the PSLF path, and don't want to miss out on the 5 years of qualifying payments I will have put in by the end this year.

      One of the jobs I am looking at (and like very much) is with Kaiser, which would not appear to qualify for PSLF as the Kaiser medical group is for profit. I was curious if anyone has gone down a similar path and either worked a separate side job (medical or otherwise) at a non profit (I believe requirement is 30 hrs/wk) in order to qualify for PSLF, or found a different way. For example, wouldn't it be possible to found, organize and work 30 hrs/week at your own PSLF approved non-profit in addition to a non-PSLF day job and still qualify? Or maybe there is an alternate path? Am wondering if this is possible or just a pipe dream.
      Theoretically possible but practically near impossible

      How can you work 30 hrs at a non-profit and also work for a for-profit organization and still have a life. How many of those profit entities will take you so that you can work 10-20 hrs at their place. There are only so many hours in a week.

      The issue is that you might do all that and in the end be held up by vague rules and lose out on PSLF. Either choose one or the other but trying to do both can lead to a disaster.

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      • #4
        Qualifying employment at a 501c3 or non-profit -- letter of the law is what your employer categorizes as a full-time equivalent but generally a minimum of 30 hours p/week. Need to make sure if you take a job at a qualifying employer that they will sign the PSLF Cert Form each year certifying you work there full-time.
        Helping student loan borrowers manage their student loans. StudentLoanAdvice.com. [email protected]

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        • #5
          I wouldn't pick job based on PSLF eligibility - unless you have >2x loan to income ratio. Then I would more strongly think about PSLF with 5 years already in.

          "Creating" a 501c3 job sounds like a terrible proposition and a great way to run afoul of the IRS.

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          • #6
            If you really want that PSLF forgiveness, you would be best off limiting your search to working directly for a non for profit. Private practices do not qualify for PSLF, plain and simple.

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            • #7
              Thank you all for the responses and practical advice. Agree with Wa2106 that "creating" a 501c3 is dicey. My loan to (potential) income ratio is somewhere between 1.25-1.5, though the figure is awfully painful to look at...

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              • #8
                I’d bet you make more money as a doctor than running your own not for profit, even if you include the amount of potential forgiveness.

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                • #9
                  In most cases, if you work an extra 30 hr/week in your field, I'm assuming you'll make far more than the amount forgiven instead of the headache of trying to jump through the hoops of PSLF.

                  Only way I'd consider it if I liked the non-profit job and would do it in my spare time anyways or if there was minimal time left that was needed to be forgiven a large amount.

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                  • #10
                    Originally posted by Ear Wax Technician View Post
                    Thank you all for the responses and practical advice. Agree with Wa2106 that "creating" a 501c3 is dicey. My loan to (potential) income ratio is somewhere between 1.25-1.5, though the figure is awfully painful to look at...
                    1.25 - 1.5 ratio is definitely not a shoe in for PSLF unless you've found a great 501c3 job.

                    If your debt to income was 2 or 3x then it's much more of a no brainer to do it. PSLF that is.
                    Helping student loan borrowers manage their student loans. StudentLoanAdvice.com. [email protected]

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