New programs aim to forgive student medical loans

New programs aim to forgive student medical loans

(HealthDay)—Changes to the student loan environment will make it possible for a significant amount, if not all, of medical student loans to be forgiven, according to an article published May 8 in Medical Economics.

Craig Molldrem, C.L.U., Ch.F.C., a financial consultant, writes that the new federal loan repayment programs of Income-Based Repayment (IBR) in 2009, the Pay As You Earn repayment in 2013, and Public Service Loan Forgiveness (PSLF) are helping doctors have their loans forgiven. For physicians faced with a long period of training, large federal loans, and who are confident they will be taking a job at a qualifying public service organization out of training, these programs can be helpful.

According to Molldrem, loan forgiveness was designed by the PSLF program for loans that were consolidated through the federal Direct Loans program if the borrower achieved 120 qualifying payments while working at public service jobs such as 501(c)(3) organizations. A lower monthly payment for people with high debt and low income is possible with the IBR program, but to qualify a doctor must have a "partial financial hardship." Under the PSLF program, physicians can achieve loan forgiveness after 10 years of working at a qualifying public service organization or 25-year loan forgiveness if working at a for-profit organization.

"The key to maximizing these programs is paying as little on these for as long as possible. This can work nicely for a physician in training since the salary during training is minimal compared to post-," Molldrem writes.

More information: More Information

Related Stories

Bailed-out banks issued riskier loans

date Jan 17, 2014

(Phys.org) —Banks that received federal bailout money approved riskier loans and shifted capital toward risky investments, according to a University of Michigan researcher.

Student loans 101: The interest rate uproar

date May 02, 2012

(AP) -- Lawmakers on both sides of the aisle agree: It would be a mistake to let interest rates on student loans double in July. Especially if they're going to be blamed for it in an election year.

Recommended for you

Game shows mosquito's-eye view of malaria

date Apr 24, 2015

A new game about the life cycle of malaria that can be played on Android smartphones has been created by an Oxford University developer, based on malaria research at the University's Nuffield Department of ...

DMV program can generate additional organ donors

date Apr 23, 2015

(HealthDay)—A brief, web-based training program for department of motor vehicles (DMV) employees that educates them about organ and tissue donation can increase the likelihood of customers registering as ...

User comments

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.