​​​​​​​​​​In partnership with Fidelity and the Larson Financial Group, Doctors Without Quarters is proud to announce the first investment product in the marketplace specifically designed to protect borrowers who are pursuing federal loan forgiveness from outstanding accruing interest if forgiveness is no longer available due to career, income, legislative, or other changes.

The Forgiveness Protection Plan, or FPP, is a low-cost investment platform that allows borrowers pursuing loan forgiveness to fund a traditional or retirement account and invest in the marketplace in accordance with their risk tolerance over the time period in which they are positioning for loan forgiveness. If forgiveness is granted, these funds will become available for other financial goals or obligations... if not, the account balance can be used to pay down accrued interest to avoid the capitalization and higher monthly payments that would otherwise result.

Here's how it works:

  • Dr. Feelgood 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, or $1250 per month.
  • ​Dr. Feelgood is married. After her DWOQ consultation, she decided to file her 2017 taxes separately and utilize PAYE to keep payments as low as possible and maximize PSLF.
  • Her payments are $250/month, or $3,000 per year.
  • Therefore, her loan balance would increase by $12,000 over the next year, or $1000 per month.
  • While in PAYE, her accrued interest does not capitalize, This creates an opportunity to generate yield on savings above what her student loan payments are.
  • Dr. Feelgood determined that her student loan budget was actually $700 per month. She pays $250 in PAYE, and invests the balance of $450 monthly in her Forgiveness Protection Plan.​ After four years of training, she will have accumulated $21,600 in contributions plus potential growth of the account.
  • Following her annual DWOQ consultations, she updates this contribution amount each year as both her income and outstanding interest grow early in her career.

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 get started, contact your DWOQ consultant today.

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

DWOQ is not a licensed financial or tax advisor. We assist you in identifying your accruing interest, and you'll use this information to set up an investment account within the Larson/Fidelity platform.

The Forgiveness Protection Plan

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An Investment Plan to Grow with Accruing Interest while Pursuing PSLF