Economic Hardship Deferment- PLEASE TAKE A MINUTE AND SIGN THE PETITION

[ChristianJames1]

This is going to affect all of us. Please take a couple of minutes and sign the petition.



As you know by now, student loan regulations are likely undergoing significant changes, particularly elimination of the economic hardship deferment's 20/220 pathway. Please take the time to contact Congress at the link below, and please forward this information widely at your institution. We have included potential text at the end of this email to help you in emailing your classmates. Don't hesitate to contact the Legislative Affairs Committee with questions.

Contact Congress in Support of Economic Hardship Deferment for Physicians

Sincerely,
AAMC-OSR Legislative Affairs Committee

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The Department of Education recently announced plans to eliminate the economic hardship deferment's debt-to-income ratio (20/220 pathway). Over two-thirds of medical residents qualify for economic hardship deferment under this pathway. The economic hardship deferment allows medical residents to postpone repayment of their federal educational loans during the first three years of their residency training without the additional interest penalties of forbearance. The AAMC has created an outlet for you to contact Congress in support of reinstatement of the economic hardship deferment's 20/220 pathway. The following link provides a letter template that will be emailed to your elected officials. Please take the time to ensure that our voices are heard.
Contact Congress in Support of Economic Hardship Deferment for Physicians
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In case there is an unforeseen problem with the link, the full address is:
http://capwiz.com/aamc/issues/alert/...SS=Take+Action

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Members don't see this ad.

 

[Ooch]

This is so easy to do. Just fill in your name and address, press send, reap the rewards.

 

[Innokus]

Wow I can't believe they're taking this away. Residents make so little and now they have to pay loans while doing residency?

 

[wutwinb]

i signed it. thanks for posting!

 

[MsJLewis]

Signed!

 

[flip26]

Everyone should do this!

 

[Daydreamer2008]

Done! and I sent it off to some med student friends 🙂

 

[flip26]

I suggest that this thread be made into a highly visible sticky!

 

[SStorm]

Signed.

 

[AlaskaGrown]

I sent the email to my state senator concerning the elimination of the 20/220 and she sent me a written response concerning what actions are being taken post-20/220. I'll post her reply this evening for all of you to see.

 

[aemed724]

It doesnt come up for me
I got

"ErrorAlert id or recipient id was not passed"




I need an access code to sign up for AAMC? Where do I get one (keep in mind I'm at a cc)?

 

[flip26]

It doesnt come up for me
I got

"ErrorAlert id or recipient id was not passed"




I need an access code to sign up for AAMC? Where do I get one (keep in mind I'm at a cc)?

no code needed...go out of the website, and go back in...

 

[Doctorverardoll]

done and posting on facebook

 

[Kikaku21]

Signed! Everyone should do it! If you get the error, just click the blue link.

 

[flip26]

bump

 

[Dmizrahi]

signed

 

[tealovr]

cool, thanks for that!

 

[muireinin]

holy craps. thanks!

 

[iA-MD2013]

I sent the email to my state senator concerning the elimination of the 20/220 and she sent me a written response concerning what actions are being taken post-20/220. I'll post her reply this evening for all of you to see.

Wow. That's great! Keep us updated.
Signed

 

[nhtreehugger]

I sent a message too!

 

[kypdurron5]

I sent the email to my state senator concerning the elimination of the 20/220 and she sent me a written response concerning what actions are being taken post-20/220. I'll post her reply this evening for all of you to see.

Still waiting.... >)

 

[Kikaku21]

BUMP!!! I am also in favor of this thread being STICKIED. Any other supporters?

 

[aemed724]

no code needed...go out of the website, and go back in...

oh okay silly me 😳 its been a long day

 

[AlaskaGrown]

United States Senate
Lisa Murkowski
Alaska

Thank you for contacting me to express your concern about a provision in the College Cost Reduction and Access Act that recently was signed into law (Public Law 110-84) which eliminated the economic hardship loan repayment provision for medical students. I appreciate the opportunity to respond to your concerns.

As you know, prior to the enactment of the College Cost Reduction and Access Act, borrowers were eligible for an economic hardship deferment of their federal student loan payments if their income was below 100 percent of poverty for a family of two, or if their income was below 220 percent of poverty for a family of two and their debt exceeded 20 percent of their income. This provision was known as the 220-20 deferment formula. Some medical residents took advantage of the 220-20 deferment formula to defer their loans while in residency.

The College Cost Reduction and Access Act changed the definition of economic hardship to allow individuals to be eligible for deferment if their income is below 150 percent of poverty, based on family size. The Act also includes an Income-Based Repayment plan, under which repayment is limited to 15 percent of the borrower’s discretionary income. The Act also provides loan forgiveness for Direct Loan borrowers (or those who consolidate their loans under the Direct Loan Program) who work in a public service or non-profit job, such as the Indian Health Service or a public clinic, for ten years.

Given the high cost of the 220-20 deferment formula, it was eliminated from the Act in order to help pay for increasing the maximum Pell Grant award and other borrower benefits. Realizing, however, that this could have an unintended negative effect on medical residents and other similarly situated students, the Act allows borrowers repaying under the Income-Based Repayment plan to have three additional years (on top of 3 years of deferment) of interest paid on federal subsidized loans at any time the borrower elects. These additional three years of deferment cover the traditional residency period.

In addition, the U.S. Department of Education will delay finalizing the end of the 220-20 deferment formula until a point where the change cannot be implemented until July 1, 2009 – the same time the new Income-Based Repayment provision starts. This delay in finalizing the end of the 220-20 deferment formula will bridge the gap for medical students.

In sum, a medical resident or medical professional could stand to benefit in these ways from the College Cost Reduction and Access Act:

1. Having 3 years of loan deferment (if income is under 150% of poverty);

2. If they participate in the Income-Based Repayment plan—

• Having an additional 3 years of interest paid off;
• Having lower monthly payments For example, a medical resident with the average first year stipend of $43,266 would only be required to make monthly payments of $349; and

3. Having their entire outstanding loan balance forgiven after 10 years of
repayment (if they work in a public or non-profit institution).

I hope this information addressed your concerns fully. Again, thank you for contacting me.

Sincerely,

Lisa Murkowski
United States Senator

 

[kypdurron5]

Haha, the battle of the form letters >). Interesting points, but I don't see how it's better than the old system, which the letter seems to suggest.

 

[appleplshr]

wonder if senator Obama will respond? 🙂