(HealthNewsDigest.com) - CHICAGO – The American Medical Association (AMA) voiced its strong support for new legislation introduced by Senator Richard Burr (R-NC) and Senator Johnny Isakson (R-GA) to permanently reinstate medical student loan deferment eligibility during residency.

The government’s Council on Graduate Medical Education now predicts a shortage of 85,000 physicians by the year 2020, as the U.S. population ages. Making it harder for students to defer medical student loans during a portion of their residency years could further deter the best and brightest from pursuing a career in medicine.

In a recent letter to the senators, the AMA thanked them for their leadership on this important issue and pledged its support to help advance the legislation. Helping medical students, residents and young physicians better finance their education and manage their high debt burden is a top legislative priority for the AMA.

“The average medical student today graduates with $139,000 in debt,” said AMA Board Member Chris DeRienzo, fourth-year medical student at Duke University School of Medicine. “Making it harder for residents to pay back this high debt can deter young physicians from going into primary care medicine or practicing in underserved areas where patients desperately need them.” (more…)

Loans are not as easy as scholarships and grants. It becomes a responsibility for many years after you graduate until you pay off the debt. And that’s why it is very vital for you to study the student loan payment plans and options when you are looking for a loan. You should always go for the best, which does not burden you with very high interest rates and heavy payment methods.

Regardless of what kind of loan you have, most of the times the student loan payment starts six months after you have graduated, or after you have gotten a job in many places. What most people are not aware of is that sometimes there might be better options for you to properly pay off the loan without burdening yourself.

Various Payment OptionsIn a common student loan payment, you basically pay the same amount every month, for a certain period of time assigned in the loan agreement previously. This period can be anywhere from five to 15 years.


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There are a wide variety of reasons why you could be considering student loan bankruptcy as a solution to your student loan debts. Even though this should be your last resort to paying off your student loans, you might find yourself in a situation that could require you to file for student loan bankruptcy.

Can You Declare Bankruptcy For Student Loans?

You can, but there are certain laws, rules and policies that you must follow. There are also certain qualifications that you must be able to prove in order to even qualify for a student loan bankruptcy. As far as qualifying to declare bankruptcy, this could be different for almost everyone.

Undue Hardship: You must be able to show that you have an undue hardship in order to qualify for this type of bankruptcy. The only way you can prove an undue hardship to declare bankruptcy for your student loans is if you are physically unable to work and you will not be able to work for the rest of your life. This is a rare occurrence, and difficult to prove to a court. You should choose this method of applying for bankruptcy if you meet the qualifications for it.

Chapter 13 Bankruptcy: You shouldn’t expect to be able to get rid of all of your student loan debts by filing under a chapter 13 bankruptcy, but you could get rid of some or most of it. The best way to apply for this one will be to expect to have your student loan debt consolidated, because that is likely what the court will do (as well as eliminate some of it). To qualify for chapter 13 you will need to prove that you have the disposable income available to pay back at least most of your student loan debt.

Are There Any Alternatives To Bankruptcy? (more…)

Bankruptcy is in the news these days, as Congress has finally overhauled the Federal bankruptcy law after years of talking about it. The credit card companies, rightly or wrongly, have been pressuring members of Congress to tighten the bankruptcy statutes, saying that too many people were willfully spending money they couldn’t repay with the intention of avoiding paying the money back by filing for bankruptcy. That will soon change, and those with student loans may pay a heavy price.

Most everyone knows that consumers with problem debt who are unable to pay their debts may file for bankruptcy under Chapter 7 of the Federal bankruptcy code. This allows for the court to basically wipe away all of the debtor’s bills and allows them to start over. It’s not entirely free; the bankruptcy filing stays on the debtor’s credit report for the next ten years and may affect their ability to buy a home, borrow money or obtain employment. What many people fail to realize is that while installment loan debt or credit card debt can be wiped out through filing for bankruptcy, most student loans cannot. In fact, thanks to legislation enacted several years ago, most any loans acquired for education, including those issued by for-profit agencies, may not be eliminated through filing for bankruptcy. (more…)

It’s not unheard of, surely. But let’s get to the basics. There are two student loan types that are made available to financially struggling students. The federal student loan is a loan given by the government, particularly the country’s Department of Education’s Federal Student Aid program. If you have a federal student loan, this is easier to get debt consolidation for. The second type would be a private student loan.

You get this loan from non-government lending institutions. Usually, they charge higher rates compared to those with the federal student loan type so it’s harder for debt consolidation specialists to take care of. In this article, we won’t bother discussing about how to get a student loan because that’s another topic entirely.

So anyway, now you’ve got your student loan, as well as other bills and you lack enough money to pay things off. Again, that’s where debt consolidation comes in. Debt consolidation is also known as bill consolidation, debt negotiation and debt settlement. Usually, the two latter terms somehow end up being connected with illegal means so it’s best to stick with debt consolidation for the moment. Debt consolidation is the process of totaling the amount of all your loans and bills put together and asking the help of a debt consolidation specialist to negotiate with your creditors in your behalf. (more…)

Consolidating student loan debt is the best way for a person to manage their money and debt right out of school. Typically a person will have a large amount of debt collected through college. This might include car debt, credit card debt, and student loans. In order to keep track of it all and to make timely payments, the student should consider consolidating student loan debt to minimize the amount of worry each month.

By getting a student loan consolidation, students can take advantage of the lower interest rates on their student loans. Consolidating student loan debt is the best way for a student to learn about money management in the “real world.” (more…)

Many college students and graduates are looking for a solution for their student loan debt. While borrowers may be having difficulty paying back student loans, there is help. Solutions for paying back student loans are available.

What causes difficulty in paying back student loans?

New college graduates may find that it takes them longer to find a job than they expected. While there’s a six month grace period from the time students graduate until repayment begins, sometimes it takes six months or longer to find a job.

Many recent graduates who are employed are underemployed — working part-time or temporary jobs until they find a permanent position. During this time they may need help in making loan payments. (more…)

College is supposed to be an exciting time for young adults, but is can also be a very stressful time too for many reasons. Of course there are academic and social pressure, but an important part of attending college is being able to pay for it, thus college students often face the problem of student loan bankruptcy. About Student Loan Bankruptcy.

While many young adults try to get college scholarships to lessen the chances of student loan bankruptcy, the reality is that scholarships often only cover a small percentage of the costs. The costs not only include the courses, but also living expenses, whether they live on or off campus. This is, of course, unless it is a full-tuition scholarship.

However, student loan bankruptcy is becoming more common, because more and more people are trying to get into selective, expensive schools. Their reasoning is that if they get into these expensive colleges, they will be able to get more prestigious jobs, and thus be able to pay off their loans. (more…)