Hi everybody,
I've been going for PSLF since my intern year in residency and have just over 5 years of payments left. Since graduating from residency I've been working as a 1099 contractor for a county hospital. Friends who are also 1099 contractors in medicine and others who work in finance keep telling me that I should incorporate and set up an S Corp, telling me that it will be more tax efficient, save me money, etc. I won't even pretend to know all the details of incorporating, but I read WCI's old post on it and came away thinking it's not worth it.
My question is, if you were to set up an S Corp, or something like it, would you still qualify for PSLF? It is my (limited) understanding that an S Corp could be argued to be a for-profit entity. Therefore, despite working for what is technically a non-profit institution (e.g. county medical system), you would likely be disqualified from loan forgiveness. Is this line of thinking sound? Would love to hear from anyone who has thoughts on this or a better understanding of incorporation etc. and how it might affect PSLF. Thanks in advance!
I've been going for PSLF since my intern year in residency and have just over 5 years of payments left. Since graduating from residency I've been working as a 1099 contractor for a county hospital. Friends who are also 1099 contractors in medicine and others who work in finance keep telling me that I should incorporate and set up an S Corp, telling me that it will be more tax efficient, save me money, etc. I won't even pretend to know all the details of incorporating, but I read WCI's old post on it and came away thinking it's not worth it.
My question is, if you were to set up an S Corp, or something like it, would you still qualify for PSLF? It is my (limited) understanding that an S Corp could be argued to be a for-profit entity. Therefore, despite working for what is technically a non-profit institution (e.g. county medical system), you would likely be disqualified from loan forgiveness. Is this line of thinking sound? Would love to hear from anyone who has thoughts on this or a better understanding of incorporation etc. and how it might affect PSLF. Thanks in advance!
Comment