PSLF vs. Private Practice Optimization Calculator
Decision Framework: This tool helps you compare the financial outcomes of pursuing Public Service Loan Forgiveness (PSLF) versus taking a potentially higher-paying private sector job and refinancing your loans. It calculates the net financial benefit of PSLF and weighs it against the opportunity cost of a lower salary.
Disclaimer: These estimates/simulations results are for informational purposes only and should not be considered financial advice. Please consult the financial aid office of your institution for additional support and a detailed analysis of your unique situation. I made this calculator for my use, and it may not be accurate so please double check.
This calculator helps you make a decision by comparing two key numbers:
- PSLF Net Financial Benefit: This is the core savings from PSLF. We first calculate the total amount you'd pay over 10 years if you refinanced privately. Then, we calculate the total of your 120 income-driven payments on the PSLF track. The difference between these two totals is your net financial benefit.
- Opportunity Cost: This is the potential extra income you give up by choosing a PSLF-eligible job over a higher-paying private sector job. We calculate the difference in your projected after-tax (take-home) pay for each job and multiply it by the number of years you'd be working as an attending to complete your 120 PSLF payments.
The Decision: If your PSLF Net Financial Benefit is greater than your Opportunity Cost, the PSLF path is likely the better financial choice. If the Opportunity Cost is greater, taking the higher-paying private job and paying off your loans aggressively is likely optimal.
Step 1: Enter Your Financial Details
Current Loan & Personal Details
For payments made *prior* to the training period you are simulating. The calculator will simulate payments for the training years you enter.
Income Details (AGI)
Enter your Adjusted Gross Income (AGI). This is used to calculate your IDR payments for the PSLF simulation.