College Cost Reduction and Access Act - what it means to you?

[edubbs5]

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This will probably get moved to the Financial Aid Thread - but I thought it couldn't hurt to spread the word.

For medical students, this new legislation may mean the end of economic hardship deferment during your residency years, says the American Medical Association’s Medical Student Section (MSS). This will leave forbearance as the only option for many. And while under economic hardship deferment your loans do not gather interest, interest continues to accrue when you’re in forbearance.

So what does this mean for medical students about to enter residency? For one, an average of almost $7000 of additional interest you have to repay. In addition, new repayment plans created under this act don’t start until July 1, 2009, leaving borrowers with limited options for minimizing their payment obligation both during and after residency.

The AMA-MSS has a TAKE ACTION section on their site that students should consider getting involved in.
http://www.ama-assn.org/ama/pub/category/14.html

 

[GreenShirt]

I like how this piece of legislation has a positive sounding name like "College Cost Reduction Act", when it does the exact opposite. Gotta love politics. I really hope it doesn't go through.

 

[edubbs5]

It has gone through and it is effective 10/1/07!
It is now a matter of getting involved to get it over-turned, reconsidered, etc!

 

[146233]

Cross-Posted in Financial Aid. Please continue to follow the discussion there. Closing.