Financial Planning Update for Medical Professionals

Monday, January 12, 2026

By Francesca L. Passen, CFP
Hobbs Group Advisors, LLC

 

What to Do Now if You’ve Been Working Toward Student Loan Forgiveness

For many medical professionals, federal student loan forgiveness (especially Public Service Loan Forgiveness (PSLF)) has been a long-term cornerstone of your financial plan. Ten years of service, decades of training, and years of payments have gone into the expectation that forgiveness would be available once the program requirements were fulfilled.

Recent legal and policy changes at the federal level have created confusion and caused certain forgiveness pathways or timelines to be delayed or paused. Many borrowers who were on track for forgiveness now find themselves in a holding pattern while the rules are reviewed or restructured.

As a CFP®, my goal is to outline what you can control right now, how to protect your progress, and what practical steps to take while federal guidance continues to evolve.

Where Things Stand

While the specific legal issues surrounding federal student loan programs continue to unfold, here’s what remains true:

  • PSLF itself still exists. The core program created by Congress has not been eliminated.
  • Past qualifying payments and years of employment still count if they meet PSLF requirements.
  • Some borrowers may see delays in forgiveness processing or access to certain newer forgiveness initiatives, depending on ongoing court actions or policy revisions.
  • Loan payments may be paused or reevaluated for certain groups while the Department of Education adjusts to legal rulings.

What You Should Do Right Now

Here is a practical, CFP-recommended checklist while the situation is in flux:

1. Continue Certifying Employment Annually

Even if forgiveness is delayed, continue submitting your Employment Certification Form (ECF) each year or whenever you change employers. This protects your record and reduces the risk of lost credit.

2. Verify That All Past Payments Have Been Properly Counted

Log in to your Federal Student Aid (FSA) account and download your payment history and check for:

  • Missing payments
  • Incorrect payment counts
  • Periods of qualifying service not properly credited

If anything looks incorrect, file a help request in writing.

3. Stay on an Income-Driven Repayment (IDR) Plan

Remaining on an IDR plan helps preserve eligibility for PSLF and other forgiveness pathways.
Even if payments are paused or recalculated later, your IDR enrollment is central to program eligibility.

4. Avoid Making Large Voluntary Payments Right Now

Until there is clarity about forgiveness processing, think twice before making big voluntary lump-sum payments. Once paid, those dollars cannot be refunded or reclassified toward forgiveness.

5. Build Your “Financial Flexibility Fund”

Direct extra savings into:

  • A high-yield emergency fund
  • A taxable investment account
  • Cash reserves for career or life transitions

This keeps you financially nimble without sacrificing potential forgiveness.

6. Maintain Documentation of Your Qualifying Employment

Especially for medical professionals with rotating roles, contracts, or part-time periods:

  • Keep copies of offer letters
  • Retain paystubs
  • Track HR contacts
  • Save credentialing documents

If rules change, documentation will matter.

If You Were Approaching Your 10-Year Mark

Many medical professionals are in years 8–10 of PSLF. If you are close to the finish line:

  • Do not assume forgiveness will disappear. PSLF is a statutory program, and historically Congress has not retroactively removed earned credit.
  • Stay in contact with your loan servicer, but document everything. Servicer errors are common during periods of regulatory transition.
  • Prepare for multiple scenarios.

Create a plan for:

  • Forgiveness happening on schedule
  • Forgiveness being delayed 6–12+ months
  • Higher future payments if recalculated under new IDR rules

A flexible plan reduces stress and protects your long-term financial picture.

If You’re in Training or the Early Years of PSLF

Residents, fellows, and early-career practitioners should:

  • Keep IDR payments as low as legally possible
  • Certify employment annually
  • Track every year of qualifying service
  • Avoid switching servicers without downloading all records first

Your early years matter just as much as the later ones.

Big Picture: What I’m Advising Clients

While legal challenges and policy shifts can feel unsettling, strategic planning can keep you on track. Right now, my advice to clients includes:

  • Do not abandon forgiveness planning prematurely.
  • Do not rush to refinance privately until there is long-term clarity.
  • Keep excellent records.
  • Give yourself options through smart cash flow planning and savings strategies.

The uncertainty is real—but so are the opportunities to protect the progress you’ve already made.

We’re Here to Support You

If you’d like help reviewing your repayment plan, verifying your PSLF progress, or building a financial strategy that remains resilient regardless of future policy changes, I’m here to support you.

A clear plan can make the uncertainty far less stressful and ensure you remain in the best possible position for long-term loan relief.

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