loan repayment with internships/residencies

[JumpHigherLivie]

Hey guys!
Quick question that I was thinking some of you might know the answer to. As far as loan repayment goes (yay significant debt for veterinary school!), if you follow up veterinary school with an internship/residency is that considered to be part of school and therefore your subsidized interest rates continue to get deferred, or even if you were to go onto an internship/residency are you required to immediately start repaying loans post graduation?

Thanks in advance!!

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[vnair2]

I actually asked this question here a few months ago (I have no idea where the topic is), so the information i am providing is third hand, but I think it is accurate.

Nope. It is not considered part of school, your loan repayment is not deferred and interest in no longer subsidized. Some of the lenders have 6 month or even year long periods after school ends before you have to start repaying, but some have less time, and some have no time. I believe you can apply for residency loans to help pay for life during a residency, but it seemed highly advised to avoid them like the plague.

Edit: I almost forgot, you can also apply for forbearance, which means that repayment is deferred, but interest continues to accrue. I dont know much else about it.

I found the topic, it is somewhere in the middle: http://forums.studentdoctor.net/showthread.php?t=606885

 

[Emio]

talking to the limited number of interns i have, forbearance seemed the way to go. you don't have much other option.

that sounded incredibly narrow-sighted. if i'm wrong, i'd like to hear it. i hope to live like a pauper with free housing, and pay back very limited amounts while on forbearance. possibly keep on top of the interest, but at this point, i think i'd be lucky to do even that.

 

[StillDreaming]

you may (and most liekly will) be eligible for economic hardship deferment.

 

[sumstorm]

I know for human med a residency that results in a certificate qualifies.

 

[sumstorm]

Eligibility Requirements
Requirements.ALL the following conditions must be met in order to qualify: (Dental Interns/Residents are encouraged to apply for an IN-SCHOOL deferment instead).

1. For all Internship/Residency Deferment requests: At the time your Direct Loan was made, you must have had an outstanding balance on a Federal Family Education Loan (FFEL) Program loan which was made prior to July 1, 1993.
   Note: The FFEL Program includes Federal Stafford Loans (both subsidized and unsubsidized), Federal Supplemental Loans for Students (SLS), Federal PLUS Loans, and Federal Consolidation Loans.
2. In addition, you must meet the requirements described below for the type of Internship Residency Deferment you are requesting: Health Care Facility or Other Institution. Health Care Facility - This deferment is for internships/residencies at institutions of higher education, hospitals, or health care facilities.
   • Your Internship/Residency must be a supervised training program.
   • Your Internship/Residency must lead to a degree or certificate.
   • You must submit an Internship / Residency Deferment form that has been certified by an authorized official of the organization which you are undertaking the internship or residency.
   Other Institution - This deferment is for internships/residencies at any other institution or organization.
   • Your Internship/Residency must be a supervised training program.
   • Your Internship/Residency must be required to become certified for professional practice or service.
   • You must submit an Internship /Residency Deferment form that has been certified by an authorized official of the organization which you are undertaking the internship or residency.
   • Complete, sign and date your form
   • Include with your application the information described below:
     • Be sure you have Section 4 of your deferment form certified by your Internship/Residency Program Official.
       AND​
     • If your program does not lead to a degree or certificate, but is required before you may be certified for professional practice or service, you must also provide a separate statement from the appropriate state licensing agency certifying this requirement. This is in addition to the certification from an authorized official of your program in Section 4.
     • If you are not registered with an employment agency you must submit documentation from an official agency that (1) verifies your eligiblity for unemployment insurance benefits and (2) includes your name, address, social security number, and the effective dates of your eligibility

https://www.dl.ed.gov/borrower/DefermentFormList.do?cmd=doViewRequirements&wizardName=Internship Or Residency Program Deferment

 

[chris03333]

"residency deferment" refers to the human med professions (and are no longer given). If you are a veterinary resident in a program which ends in a degree you can do the "in school" deferment.

"economic hardship" deferments will be phased out within a year or so.

Otherwise you use forbearance

 

[StillDreaming]

"residency deferment" refers to the human med professions (and are no longer given). If you are a veterinary resident in a program which ends in a degree you can do the "in school" deferment.

Where did you find this info, or do you know from personal experience through yourself or friends. I have always thought this was the case, but this thread got me researching it and i can't find anything other than what sumstorm found, and it only says something about dental students...

 

[chris03333]

Where did you find this info, or do you know from personal experience through yourself or friends. I have always thought this was the case, but this thread got me researching it and i can't find anything other than what sumstorm found, and it only says something about dental students...

I am a veterinary resident so know this all too well

From Sumstorms post Your Internship/Residency must be required to become certified for professional practice or service.

Veterinarians are not required to complete an internship/residency to be certified for professional practice. That is what takes us out of the equation. There is also a portion in the small writing on the forms for deferment which specifies MD, DO, DDS.. (I don't remember exactly where it is, but trust me with the amount of loans over my head, I did all I could to figure this stuff out).

If you are going for a degree, you qualify for in school deferment (during residency, I do not know about internship as I skipped that whole process thank goodness)

 

[StillDreaming]

sorry to ask so many questions, but you obviously know what you're talking about and i would like to take advantage of your generosity of posting on these boards right now...

So is a residency considered 'degree seeking'? I mean you aren't technically working towards a degree, but you are working on becoming certified... all this wording in fancy forms confuses me lol...

thanks so much!

 

[sumstorm]

sorry to ask so many questions, but you obviously know what you're talking about and i would like to take advantage of your generosity of posting on these boards right now...

So is a residency considered 'degree seeking'? I mean you aren't technically working towards a degree, but you are working on becoming certified... all this wording in fancy forms confuses me lol...

thanks so much!

Yeah, what I couldn't figure out was if a residency that ended in board cert would count.

 

[alliecat44]

sorry to ask so many questions, but you obviously know what you're talking about and i would like to take advantage of your generosity of posting on these boards right now...

So is a residency considered 'degree seeking'? I mean you aren't technically working towards a degree, but you are working on becoming certified... all this wording in fancy forms confuses me lol...

thanks so much!

In case chris doesn't come back tonight...

the "degree-seeking" only applies if you are working towards a concurrent MS or PhD during your residency. These are pretty much only offered with academic residencies, for obvious reasons. Some academic residencies require at least a concurrent MS, while others give you the choice of one/either/none.

 

[chris03333]

In case chris doesn't come back tonight...

the "degree-seeking" only applies if you are working towards a concurrent MS or PhD during your residency. These are pretty much only offered with academic residencies, for obvious reasons. Some academic residencies require at least a concurrent MS, while others give you the choice of one/either/none.

Yup what she said

Clarification: You can complete a residency and NOT be boarded. There are these pesky things called "board exams" that you have to pass. So what you get for completing your residency is a residency certificate (not degree) and if you have met all other requirements are then considered "board eligible"....

 

[StillDreaming]

Hmm okay, this makes sense. I knew about the 'board eligible' thing... I am currently working with a vet who completed her residency and then spent an extra year studying for the exams... everytime i went to the library, she was in there, no matter the time... paid off though, she passed...

oh the joys of the next few years, loans and studying... fun

 

[DocDVMD]

Chris, how do you know they will be phasing out economic hardship deferment? That was my only hope at being able to do an internship/residency with over $200k in debt...