Defer through entire residency?

[citarita]

Advertisement - Members don't see this ad

Hi. I am currently a PGY-1 in a surgery program. One of my friends at another program told me about some form you could have your program director/coordinator fill out that would allow you to DEFER YOUR LOANS THROUGHOUT YOUR ENTIRE RESIDENCY. Has anyone else heard of this? Is it legit????? Does anyone know where I can download this form from???

 

[Doctor Bagel]

Well, since there's no special residency deferment option anymore, I really don't think there's anything where you can get an automatic deferral like this. You can generally get a forbearance through your entire residency -- maybe your friend was confusing the two.

The main deferment option for residents is through the economic hardship deferment program.

 

[citarita]

She actually said it was a deferment, not forebarence option, through the entire residency. If anyone knows anything about this, please post! Thanks.

 

[johnstoner]

definitely, if anyone has any clues about this option it would help a lot of us. In the meantime, I don't know of any deferment options...and given the new federal student loan deal that pretty much messed us all up...its going to get harder than ever to save money.

 

[mshheaddoc]

Maybe it is lender specific b/c the only deferment I have heard has been yearly. I spoke to my husband's lender at lengths about this and they require yearly application. Meanwhile his private loans are ALL deferred through the end of his residency per terms of his loan.

 

[southerndoc]

Some programs (i.e., Sallie Mae) process residency deferment requests as administrative forbearances, which means you lose your borrower benefit. I found this out today as I was inquiring about the status of my benefits/incentives during repayment.

This is something that was not spelled out in the note I signed, and I may be forwarding this to the CT Attorney General for review of bait and switch tactics.

 

[Leforte]

This is how it has worked for me:

Used 6 months grace period after graduating.
Consolidated in Nov PGY 1 year
3 year economic deferment (interest paid on subsidized portion of consolidation)
Starting Nov PGY4 year, entered forbearance - interest accrues on total loan amount **This is where I am at now**
No payment due until Nov after I complete residency
0.25% rate reduction for automatic payments once in repayment
3 years after on time payments 1.0% rate reduction

 

[edubbs5]

In the past - (because I work with a lender) - students who had consolidation loans would EITHER use forbearance first on their student loans with NO grace, and then start the deferment at the same as their Staffords grace end date - or - go directly into deferment using previous year's taxable income (or lack thereof).

Now because as of 7/1/09 - the introduction of the Income Based Repayment (IBR) Plan I would recommend all borrowers to go into immediate repayment - this way - they should be able to qualify for Economic Hardship Deferment in 08 and 09 - before the IBR plan would require payment or forbearance instead.

I hope that helps- but I could help more if anyone has additional questions.

 

[RasputinDO]

Are you saying all of 08 and 09 or just until 7/1/09

 

[edubbs5]

Are you saying all of 08 and 09 or just until 7/1/09

Econ Hardship is given for 1 full year - based on when you qualify. So if you qualify on June 30, 08 you would be defered until June 30, 09.
So, If your grad date is before 7/1 in the year - you would want to apply for deferment before 7/1 - to be sure that your year cycle is in effect before the Income Based Repayment Plan becomes effective on 7/1/09.

There is current "Negotiated Rulemaking" taking place regarding such pieces as how Ecomonic hardship deferment and the new IBR plan will be interrpretted. As it seems - this will be the safest route to be maximizing your deferment eligibility.