Loan Deferment/Forbearance Information
Undoubtedly during your years in medical school you borrowed one or more types of student loans. It is important to keep accurate records concerning your student loan debt. This will help you be aware of the end of grace periods, deferments, and forbearances so that you can (re)apply for them in a timely manner. This will also assist you in avoiding unnecessary interest capitalization, delinquency and default due to missed payments on your student loan obligations.
For medical residents, the most frequently missed payment is the first payment; this is due to changes in name or address. Please be aware that it is your responsibility to notify your lender/servicer of any changes to your name or address. If you have had a name or address change since you completed medical school, you need to notify your lender(s), via phone, email or online forms. If you are unsure of who your lenders are, visit the National Student Loan Database at www.nslds.ed.gov. You will need your FAFSA PIN to login. If you no longer have your FAFSA PIN visit the PIN web site to request a duplicate PIN
Further, many lenders offer repayment benefits that require the borrower to meet certain criteria before the benefit can be fully realized. Keeping accurate records about your student loans and borrower benefits can help you take full advantage of these benefits.
Changes to Deferment Options for Medical Residents
Beginning July 1, 2009, borrowers will no longer be able to apply for Economic Hardship Deferment based upon the 20/220 debt to income ratio. Borrowers must submit the Economic Hardship Deferment form to their lender(s) by June 30, 2009 to ensure that you will receive a last year of Economic Hardship Deferment if you qualify. Only loans in repayment at the time of application will be eligible for the Deferment.
Beginning July 1, 2009, borrowers may apply to participate in the new Income Based Repayment (IBR) program. IBR allows borrowers to receive a partial hardship deferment while making a reduced payment. IBR also allows for forgiveness of the outstanding loan amount after 25 years or 10 years if the borrower is employed at a qualifying Public Service employer. The payment amount for IBR is determined by the borrower's income and family size. Click Income Based Repayment to access an IBR calculator and for additional information on this new repayment program.
Other types of deferment are still available to eligible borrowers:
In-school Deferment--Borrowers must be enrolled at least half-time in a degree seeking program.
Graduate/Fellowship Deferment--Borrowers must be in a qualifying program; check with your program administrator.
Unemployment Deferment--Borrowers must be actively seeking employment; contact your lender(s) to see if you are eligible.
Forbearance--Forbearance is the temporary postponement or reduction of your monthly student loan payment obligation. During forbearance interest accrues on the entire balance of your student loans, including your subsidized loans.
Medical Residents are eligible for Mandatory Residency Forbearance during their residency years. Mandatory Residency Forbearance requires that your lender allow you to postpone payment of your loans during your additional years of training. While this alleviates your monthly payment obligation, interest is still accruing on the entire balance of your student loans and will be capitalized upon entering repayment.
Deferment and Forbearance Requests
To assist you in maintaining your deferred or forbearance status, bring or fax your deferment request form(s) with a copy of your residency contract to our office located in the Medical School, in Caroline Room 120 or fax it to 314-977-9811. Office hours are Monday to Friday 8:30 a.m. to 5:00 p.m. No appointment is necessary. If you fax your deferment request, be sure to include instructions about where it is to be sent.