ERIC Number: ED340309
Record Type: Non-Journal
Publication Date: 1991-Nov
Reference Count: N/A
Medical Residents: Options Exist To Make Student Loan Payments Manageable. Report to Congressional Requesters.
General Accounting Office, Washington, DC. Div. of Human Resources.
A study was done to evaluate the ability of medical residents to repay their Stafford loan educational debt with a repayment deferment limit of 2 years. Using data on 1990 medical school graduates, the study compared medical residents' educational debt burdens to a financial hardship indicator keyed to loan default prevention. Results indicated that requiring medical residents to begin repaying their Stafford loans could cause them financial hardship. Third- and fifth-year residents would use about 17 and 18 percent of their gross income to meet student loans obligations, exceeding the 10 percent considered to be unmanageable. In addition, the study found that residents could make their loan debt more manageable by exercising debt relief options such as obtaining forbearance of principal and interest for Stafford loans. Complete forbearance on Stafford loans would reduce debt burdens to 4 and 7 percent, reflecting student loan payments other than Stafford and comparable with those incurred by nonmedical borrowers. As lenders are currently not required to provide residents complete forbearance, the U.S. Department of Education plans to revise regulations to require lenders to honor such requests for complete forbearance. Appendixes contain the bulk of the report, with sections on methodology, three tables displaying the results, and a list of contributors to the report. (JB)
Descriptors: Educational Finance, Financial Problems, Graduate Medical Students, Higher Education, Loan Default, Loan Repayment, Student Financial Aid, Student Loan Programs
U.S. General Accounting Office, P.O. Box 6015, Gaithersburg, MD 20877 (first copy, free; additional copies $2.00 each; 100 or more discounted 25 percent).
Publication Type: Reports - Evaluative
Education Level: N/A
Authoring Institution: General Accounting Office, Washington, DC. Div. of Human Resources.
Identifiers - Laws, Policies, & Programs: Stafford Student Loan Program