Medical Loan Deferment Continues for Another Year
Residents and fourth-year medical students may continue to defer medical school loans because of economic hardship for another year, and legislation has been introduced that would extend this benefit.
The 20/220 rule, which defined economic hardship, was eliminated under the College Cost Reduction and Access Act, which took effect Oct. 1, 2007.
The Department of Education was able to keep the rule through fall 2008, but legislation is needed to ensure that it stays intact after that. A bill to reverse elimination of the 20/220 rule was introduced in the US Senate on Nov. 2, 2007.
Contact your legislators in support of student loan relief measures. Find your legislators using Capwiz, the Pennsylvania Medical Society’s e-advocacy tool.
The 20/220 rule allows residents to defer payments for three years without accruing interest on subsidized loans if:
- Their debt burden is greater than 20 percent of their income.
- Their income minus their debt burden is not greater than 220 percent of the federal poverty line.
Last Updated: 11/28/2007