A Strategic Approach to Managing Your Debt and Finances During Your Utah Residency

1. A Strategic Approach to Managing Your Debt and Finances During Your Utah Residency University of Utah Resident Orientation Presented by John Collins, Managing Director of GL Advisor

2. Agenda • IBRversus PAYE • Tying the Knot • Training Exit Interview • White House Budget Proposal

3. Changes in Student Debt Levels ~$300k+ ~$220k ~$89k ~$50k 2000 2013 1993 Debt levels have quadrupled in the last 20 years * Based on data collected by AAMC, AMA and GL internal student database

4. IBR vs PAYE • PAYE provides additional $2,270 in liquidity during residency • PAYE reduces total cost by $83,450 compared to IBR when considering PSLF Recent order by Obama broadens eligibility

5. Tying the Knot A PGY2 resident with $207k in federal student loan debt on academic career track gets married. How does the loan repayment strategy change if the spouse has no student loan debt and makes $90K salary? Forgiveness Potential $232,039 Forgiveness potential $150,305

6. EXIT INTERVIEW After 4 years of training, a graduating resident contemplates the next step in her career. How does loan forgiveness impact the economics of working for a non-profit? Original Debt: $250,000 Debt after training: $308,000 Non-profit salary offer: $155,000 For-profit salary offer: $205,000

7. Salary Equivalent Public VS Private Actual For-Profit Practice Salary Additional from Public Service derived from forgiveness Actual Public Service Salary Assumptions: PAYE eligible. The taxable equivalent amount assumes a marginal federal tax rate of 20% and a marginal state tax rate of 5%.

8. White House Budget Proposal • Expansion of PAYE to all federal loan borrowers • Helps reduce cost for borrowers, simplify process for servicers • Removal of the cap on payments • New cap on amount forgiven through PSLF • $57,500 limit, based on max borrowing amount for independent undergrads • Balances above $57,500 will not be forgiven until 25 years of participation • 20 and 25 year forgiveness options to be tax-free

9. White House Budget Proposal *Loan balances, rates, and payment information based on GL Advisor client data. Payment calculation assumptions can be provided upon request.

10. Action Plan • Consolidation: Evaluate and complete a consolidation with the Direct Loan Program. • Income-Based Repayment/ Pay As You Earn: • Apply for and enter IBR or PAYE (during residency). Re-apply annually with income documentation and family-size verification. • Manage Liquidity: • Ensure you have sufficient cash flow to make all necessary loan payments. • Manage Discretionary Income: • Determine how to allocate extra cash to insurance, retirement, and other needs. • Public Service Loan Forgiveness: • Track eligible payments, maintain employment documentation. • Tax Filing: • Incorporate impact of taxes on federal loan subsidy programs when filing

11. For more information and to schedule a complimentary personal consultation, please see John in the lobby after Orientation: jcollins@gladvisor.com Main: 877.552.9907 All government sponsored programs are subject to their continued existence, availability and participation requirements. GL Advisor is a division of Graduate Leverage, LLC. GL Advisor currently does not offer all services to residents of North Dakota.