Loan Repayment

Loan Repayment

All medical students who have borrowed loans must attend an in-person exit interview prior to graduation or withdrawal.  This comprehensive session will cover loan terms and conditions, repayment plans and strategies, residency information, loan repayment and forgiveness lans, and financial literacy.  In addition, during your exit interview you will receive a flash drive with your personal debt information - including amounts and types of loans, monthly payment options, loan servicer contact information, and a personalized To Do List.

If at any point you have any questions, please feel free to contact your counselor.

 

Repayment plans

Standard: The standard repayment term for federal student loans is 10 years. 

Extended: Borrowers with over $30,000 in debt may take up to 25 years to repay their loans.  The longer you take to repay your loans, the more interest you will pay.

Income-Based Repayment: Particularly useful during residency, this plan bases your monthly payment on your income and family size.  The average single resident would pay about $390/month on this plan.  Income-Based Repayment offers several financial benefits, including partial subsidies on your subsidized loans if your monthly payment does not cover the accruing interest and delayed capitalization of accrued interest.  In addition, if you work in public service and make Income-Based payments on your Direct Loans for 10 years, you may qualify for the Public Service Loan Forgiveness Program.

Please see http://studentaid.ed.gov/PORTALSWebApp/students/english/IBRPlan.jsp for complete details.

Graduated Repayment: Under this payment plan, your payments start out low and increase every two years.  Borrowers who select this payment plan must keep careful track of their payments, particularly when the payment changes.  We generally don't recommend this option for busy medical residents.

 

Residency

Medical residents are not required to repay their federal loans if they apply for a residency forbearance.  You cannot request this forbearance over the phone.  You must fill out (and have your Residency Director sign) the "internship/residency" or "internship/service" forbearance form.  This forbearance is good for 12 months at a time, and you may re-apply for the duration of your residency.  Your lender must grant this forbearance if you are in a residency program.

During forbearance, interest accrues on all loans (including subsidized loans), but no payments are due.

 

Fellowship

Borrowers in an approved graduate fellowship program are eligible for deferment of their federal loans.  You must apply for this deferment.  During any deferment, you will not accrue interest on your subsidized loans. 

 

Trouble repaying your loans?

If at any point you find that you are having trouble repaying your loans, contact your lender immediately.  There are often deferment and forbearance options for borrowers facing financial difficulties.

 

Loan Repayment/Forgiveness Programs

There are a number of programs that offer loan repayment/forgiveness.  The Public Service Loan Forgiveness Program (for Direct Loan borrowers) is available for borrowers working in the public sector. 

The AAMC has a comprehensive listing of other state and federal loan repayment programs on their website: http://services.aamc.org/fed_loan_pub/index.cfm?fuseaction=public.welcome&CFID=1170233&CFTOKEN=95528494