New U.S. Dept. of Education Rule for TX Physicians pertaining to student forgiveness loans

TCEP is keeping our eyes on the proposed changes for the federal Public Student Loan Forgiveness program to be implemented on July 1, 2023. We’d like to highlight one significant addition for Texas physicians. This PSLF change is to allow:

“Borrowers in the narrow and specific situation of a borrower who works as a contractor for a qualifying employer in a position or providing services which, under applicable state law, cannot be filled or provided by an employee of the qualifying employer to qualify for PSLF.”

“The Department has amended the definition of the term “employee or employed” to include an individual who works as a contracted employee for a qualifying employer in a position or providing services which, under applicable State law, cannot be filled or provided by a direct employee of the qualifying employer.”

“An employee who works under this condition may receive a Form 1099 which would be acceptable instead of a W-2.”

If your employment situation reflects the above, you may not want to refinance your federal loans at this time. Consider the PSLF program and if your employer meets these requirements. Also, we tried to save you time from reading the substantial legal document on the changes. But, if you want the specifics, you may find them here.