House Introduces Medical Student Loan Deferment

Rep. Rob Andrews (D-NJ) has introduced the ³Healthcare Student Financial Assistance Act² (H.R. 2519).  The bill seeks to improve the economic hardship deferments of student loans for medical and dental interns, residents, and fellows.  This legislation, if enacted, would benefit greatly osteopathic interns, residents, and young practicing physicians by allowing increased flexibility in deferring student loans during residency training.

Under current law, eligible medical residents may defer their student loan
debt for three years.  They must apply for such deferment on an annual basis and meet the income to debt ratio standards.  H.R. 2519 increases the allowable years from three to five and eliminates the annual application process.  Once resident physicians are granted economic hardship, they are not required to petition for the deferment on an annual basis.  Instead, they are granted deferment for the time of training or five years, which ever is shorter.  The bill also increases the income to debt ratio.  This should provide greater opportunities for more residents to qualify for the deferment program.

   Shawn Martin (smartin@osteopathic.org)