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Using an Investment Plan to Hedge Against the Risks Associated with PSLF

​​​​​​​​​​​​Doctors Without Quarters is proud to announce the launch of Larson Financial Group, LLC’s automated investment platform.  The automated platform is an option to help borrowers who are pursuing federal loan forgiveness to protect themselves from outstanding accruing interest if forgiveness is no longer available through the U.S. Federal Government’s Public Service Loan Forgiveness (PSLF) program due to career, income, legislative, or other changes. 

A “Forgiveness Protection Plan” (FPP) may benefit borrowers by creating an efficient, low-cost investment platform to accumulate assets than can either be used to retire student loan debt not covered by PSLF or to improve their general financial well-being. Larson’s platform allows an investor to invest their money in the portfolios aligned with their risk tolerance and it allows the investor to set up a periodic savings plan to help grow the account(s) over the time.  Further, a range of other investment types may additionally or alternatively be available and discussed with a Larson 
Advisor if and when an investor wants to explore those options. 


Here's an example of the concept in action:

  • Dr. Feelfine graduates medical school with a $250k student loan balance at an average interest rate of 6%. Over the course of a year, this balance would accrue $15,000 of interest if no payments were made (roughly $1,250 in interest accrual per month).
  • After her DWOQ consultation, she decided to utilize PAYE to keep payments as low as possible to maximize PSLF. Given Dr. Feelfine’s profile, her PAYE payment is $250 per month for total payments of $3,000 over a year. Thus, the balance of the loan will continue to grow as non-paid interest is added to the loan balances. Because Dr. Feelfine is using PAYE, the loan interest does not capitalize and, thus, helps create an opportunity for her.
  • During the loan review process, Dr. Feelfine determined that she would be comfortable committing $700 per month to her student loan payoff plan.
  • Dr. Feelfine begins to invest the difference of $450 per month ($700 planned commitment less $250 payment) on Larson Financial Group, LLC’s automated investment platform. After four years, she will have dedicated $21,600 (plus, the potential growth* from the investments) to her personally created “Forgiveness Protection Plan”.  

    DWOQ strongly believes that every borrower enjoying lower student loan payments while pursuing loan forgiveness should have a protection plan in place. We work with our fee-based clients to enroll them in repayment plans to maximize forgiveness, but also to identify the cost of not getting loan forgiveness (see our recent blog post for examples of such risk) so that it can be accounted for.

    To learn more or get started today, contact your DWOQ Advisor or email us at help@dwoq.com.

    Non-Profit Hospitals: Looking to provide a unique and tailored student loan benefit to attract and retain clinicians? Contact Jason DiLorenzo for more information at jason@dwoq.com.


    *Risk Disclosure. Investing in securities involves risk of loss that clients should be prepared to bear. No investment process is free of risk; no strategy or risk management technique can guarantee returns or eliminate risk in any market environment.

    Doctors Without Quarters, LLC is not a Registered Investment Advisor and its Consultants are not licensed to offer investment, tax or legal advice. DWOQ will assist you in identifying your loan’s potential accruing interest. You are welcome to use this information to help determine how much to save in an investment account within the Larson Financial Group, LLC or any other platform, but providing this information should not be considered a recommendation of how much to invest or a recommendation on how to allocate any investment account.  Doctors Without Quarters, LLC, Larson Financial Group, LLC, and Larson Financial Securities, LLC are affiliated entities and are each part of the Doctors Only, LLC network of companies.

    Advisory services offered through Larson Financial Group, LLC. Securities offered through Larson Financial Securities, LLC, member FINRA/SIPC. Larson Financial Group, LLC, Larson Financial Securities, LLC and their Representatives do not provide legal or tax advice. Please consult appropriate professional regarding your legal or tax planning needs.


Develop Your Forgiveness Protection Plan