New Federal law could impact loan repayments for medical student and resident physicians |
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A key provision in a new education financing law could adversely affect loan repayments for up to 67 percent of resident physicians. At issue is the recent elimination of the "20/220" rule—a regulation that had enabled many resident physicians to qualify for economic hardship deferment, and defer payment for three years without accruing interest on subsidized loans. Residents qualified if their debt burden was greater than 20 percent of their income, and if their income minus their debt burden was not greater than 220 percent of the federal poverty level. As part of the College Cost Reduction and Access Act (H.R. 2669), which was signed into law Sept. 27 and took effect Oct. 1, the 20/220 rule no longer exists. Instead, under a new program, loan repayments would be capped at 15 percent of the borrower's income that is above 150 percent of the federal poverty level. But the new program does not begin until July 1, 2009. For more information on this issue go to
http://www.ama-assn.org/ama/pub/category/18025.html
(medical students) or |
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