1. What is your student loan payoff strategy?
Tim Ulbrich, PharmD

2. Mission
To empower a community of pharmacists and pharmacy students to achieve financial freedom.

3. Learning Objectives
At this end of this session, you should be able to:
Describe the landscape of pharmacy graduate indebtedness
Evaluate the current status of your loans
Describe the pros/cons of the public service loan forgiveness (PSLF) program
Describe the difference between consolidation and refinancing

4. Hello, Student Debt

6. AACP Graduating Student Survey, 2017
The average amount borrowed for students graduating from pharmacy school in 2017 was $163,494.
AACP Graduating Student Survey, 2017

7. Know and Respect the Power of Compounding Debt

8. How Much Goes to Interest?
44% of payment goes to interest
38% of payment goes to interest

9. What’s 10 More Years To Pay It Back?
$150,000 of school loans at 6% interest for 10 years = $1,665 payment / month
Total payout = $199,837

10. What’s 10 More Years To Pay It Back?
$150,000 of school loans at 6% interest for 20 years = $1,075 payment / month
Total payout = $257,915

11. What’s the best path forward?

12. How does your total student loan debt make you feel?

13. Steps to Take With Your Loans
Inventory your loans
Determine your payoff strategy
Access repayment plans, other

14. Inventory

15. Inventory Determine the loan type(s) Determine the status
Determine the terms

17. Example

18. Example
Repayment Estimator:

19. Determine Your Payoff Strategy

20. Student Loan Payoff Strategy
Federal Loan Program
Forgiveness
(PSLF or non-PSLF)
Non-forgiveness

21. Public Service Loan Forgiveness (PSLF) Program
1. Work for the right type of employer
2. With the right kind of loan
3. In the right repayment plan
4. Make the right amount of payments
5. Prove it
6. Apply and receive tax-free forgiveness

22. Non-PSLF Forgiveness 1. Work for the right type of employer
2. With the right kind of loan
3. In the right repayment plan
4. Make the right amount of payments
5. Prove it
6. Apply and receive tax-free forgiveness

23. Non-Forgiveness 25 years All in 10 year Standard

24. Non-Forgiveness 25 years All in 10 year Standard

25. Assess Payment Plans, Other

26. Repayment Plans Standard Income Based (IBR) X2 Graduated
Income Contingent (ICR)
Extended
Pay As You Earn (PAYE)
Extended Fixed
Revised Pay As You Earn (REPAYE)

27. Repayment Plans Standard Income Based (IBR) X2 Graduated
Income Contingent (ICR)
Extended
Pay As You Earn (PAYE)
Extended Fixed
Revised Pay As You Earn (REPAYE)

28. Income Driven Plans
Calculate payments based on the following variables:
Balance
Interest rate
Tax filing status
Income (AGI)
Family size
State of residence
Need to submit info every year even if situation does not change

29. Consolidation & Refinance

30. Refinancing Student Loans
Worth evaluating for those with:
High(er) interest rate loans
Higher the debt load = higher potential savings
Not pursuing PSLF
Able to make aggressive payments
Not dependent on benefits of federal loan repayment program

31. Before you refinance… No prepayment penalty No origination fees
Determine which loans you do and do not want to refinance

32. Student Loan Refinancing Guide
yourfinancialpharmacist.com/refinance

33. Q&A
Tim Ulbrich, PharmD

34. What is your student loan payoff strategy?
Tim Ulbrich, PharmD