The alarm shrieked, tearing into slumber’s sweet serenity before the crimson sun even had a chance to dress itself in its golden robes. Adam jolted awake, his sight still in the custody of the night’s plaster. He awoke as if sleep itself had become a dangerous thing: heart galloping, fists clenching, rapidly inflating his lungs, prepared to mount an attack against the accursed siren that had ripped him from his dreams. Almost instinctively, his hand came down upon the clock, resembling a hammer upon an anvil, commanding the bell to withdraw into hiding.
The day had finally arrived. In just a few short hours, he would be making his way across a creaky wooden stage, head held high, beaming from ear to ear. With the roar of his friend’s applause propelling his feet forward like a gust behind a sail, Adam would eagerly clutch his diploma as he paused for an obligatory picture. “I made it, I’m finally a chiropractor,” Adam would say to himself. But a diploma was not the only award Adam would be receiving that day. In fact, he would be getting another, albeit more dismal, prize, just as 45 million other Americans had. …
Student loans.
Two seemingly innocent words strangle the hearts-and wallets-of many graduates today. Perhaps unlike any other time in the profession, more and more graduates are concerned about their ability to repay the gargantuan balances that they have accrued over the course of their studies. Moreover, unlike any other time in the profession, more and more educational institutions are acutely aware of the rising costs of student recruitment and retention. Both parties seemingly in dire straits.
For many, the most straightforward path to seeing their balance dwindle to zero is the arduous dirt road of income-driven or extended repayment plans, laying claim to the next 25 or so years of their life. However, as I soon found out, this was not the only path forward.
The Road Less Travelled
When I began exploring what my life would look like after all the applause had faded and the mortarboards were gathered from the gymnasium floor, I stumbled upon the integrated clinical practice residency in the U.S. Department of Veterans Affairs (VA). As I examined the laundry list of programmatic details, I came upon the compensation section. I’ll be honest, the salary did not appear all that impressive, after all, many of my peers had already accepted offers at offices making far more than this. Besides, I would have to move halfway across the country for many of the sites — if I got accepted at all.
However, I soon learned of a few massive benefits tucked beneath the canopy of this residency.
Forbearance
While arguably not the best perk, participating in a residency enables an individual to put their federal student loans in “forbearance.” When you place your loans in forbearance, you are not required to make payments for the total duration of the program — in the case of the VA chiropractic residency, this was one full year. In theory, this delay would allow you to build up cash reserves. Although, during this time, interest continues to accumulate and privately held student loans are not eligible for these forbearance options.
Forgiveness
The biggest benefit this residency afforded me was eligibility for Public Student Loan Forgiveness (PSLF). The PSLF program is a federal loan forgiveness program that erases an individual’s student loan balance, tax-free, after that person has made 120 monthly payments while using a qualifying repayment plan and working for a qualifying organization. The VA is a part of the federal government and therefore my employment as a chiropractic resident qualifies me for PSLF inclusion. Other qualifying organizations include state/local governments and not-for-profit institutions like some hospitals and schools.
The catch is that I have to make payments, using a qualified plan, during my residency and not simply allow my balance to take its seat in the corner. In addition, I have to submit a PSLF form annually. But at the end of my residency, I could have Year 1 of 10 already completed, inching my way closer to the precipice of forgiveness.
While it is beyond the scope of this article to dive into the nuances of each repayment plan available (as the right choice depends on life plans, goals, and external demands), several income-based repayment options would likely carry minimal monthly payments for residents due to the low salaries afford by the programs.
But what about the next nine years? One of the strengths of the VA chiropractic residency program is that it positions you well for employment in the VA post residency. As a consequence, many residents have job offers before the residency even finishes, securing them a robust path toward student loan forgiveness and professional fulfillment.
Even though the PSLF program has numerous hoops to jump through, it is by far the fastest and most forgiving student loan repayment option chiropractors presently have access to. The VA chiropractic residency enabled me to gain eligibility to this program and reduce the mental and financial impact of my student loan debt.
Dr. Schut is the 2023-2024 chiropractic resident at the VA Connecticut Healthcare System (West Haven, CT). To read more about the VA residencies, click here.
Disclaimer: The views expressed in this article are those of the author and do not reflect the official policy or position of the Department of Veteran’s Affairs or U.S. Government.
