Consolidation and Medical Residency | 03.08.07
Great question came in today from a medical student in Illinois. He just completed his courses this January and is graduating in May from Medical School. Beginning this summer he will be starting his medical residency. He was wondering if he can consolidate all his loans for both undergraduate and medical school BUT be able to take advantage of a student loan deferment or forbearance while he is doing his residency.
I explained to him that he can apply for a hardship deferment while in residency. The hardship deferment is a maximum of 3 years and is based on your income (as listed on last year’s taxes). This usually means that for the first two years you’ll automatically be eligible since your income for the first year of residency is based on your income during your last year in medical school (for most people income will be $0). And your second year of deferment during residency will be based on only the first 6 months of residency (June to December) which should make you eligible. Basically what I am saying is that consolidating does not effect your deferment options at all.
To consolidate your student loans must be in a grace period or in repayment status. If you just graduated you may want to follow up with your current lenders and let them know you have graduated from school and they will make the adjustment. Also, only federal student loansÃ¢â‚¬”those funded by the federal government’s Title IV programÃ¢â‚¬”are eligible for federal consolidation. These include Stafford loans, Perkins loans and HEAL loans, among others.
For more details on federal loan consolidation from the Student Loan Network please visit www.studentloanconsolidator.com- Deferment, Forbearance, and Consolidation
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