Debt Management & Credit Worthiness
Debt Management General Suggestions
The following are proffered regarding to debt management and your financial future.
- Consider all scholarship options including the military, NHSC, and outside scholarships.
- Consider low-interest loan options, including the Primary Care Loan Program.
- Keep good financial records, including all records of your student loans.
- Ask questions. Financial mistakes can be very costly over time.
- Maintain contact with your lenders at all times.
- Live frugally. It will reduce your need to borrow while in school and provide extra money to repay loans after graduation.
- Attack debt aggressively. When you are able after graduation, make voluntary payments toward your principal to accelerate loan repayment.
- Know and review periodically your after graduation deferment options, such as the economic hardship forbearance.
- Know and review your repayment options, such as the graduated repayment plan, the income sensitive repayment plan, the extended repayment plan, and loan consolidation.
- Consider loan repayment programs, such as those offered by NHSC, by NIH, by the military, and by many state governments
- After completion of training, include student loan repayments in a carefully constructed budget.
- After graduation, seek help when needed from a qualified financial advisor.
- Start an investment and retirement program early. You will be surprised how small investments over time will grow in value.
- When negotiating with prospective employers who are recruiting you after the completion of your medical training, discuss your loan repayment obligations.
- Ensure your future success by completing a residency training program and becoming board certified in your field. Expect to be well-paid for your services. Make sure your income is sufficient to allow you to repay your educational debts.
- Whatever you do, do not go into default on your student loans!
Information Resources on Financial Aid & Debt Management
- Association of American Medical Colleges: http:www.aamc.org
- Information on the U.S. Department of Health and Human Services financial aid programs for medical students can be accessed at http://bhpr.hrsa.gov
- Information on the Free Application for Federal Student Aid, including the online application, can be accessed at: http://www.fafsa.ed.gov
- This is regarded as one of the best comprehensive sites for financial aid information:http://www.finaid.org
- This is considered one of the best scholarship search engines available:http://www.fastweb.com
- An excellent general site for medical student financial aid is published by the Association of American Medical Colleges at:
- http://www.aamc.org/students/financing/md2/start.htm
- http://www.aamc.org/students/financing/debthelp/start.htm
- http://www.aamc.org/students
- Education Debt Manager for Graduating Medical School Students
- Information on the scholarship program offered by National Medical Fellowships, Inc. can be accessed at: http://www.nmf-online.org
- Information on the National Health Service Corps Scholarship Program is available at: http://nhsc.hrsa.gov/index.html
- Information on the National Health Service Corps Loan Repayment Program is available at: https://nhsc.hrsa.gov/loanrepayment/
- Information on credit scoring is available at: http://www.myfico.com andhttp://wwww.bankrate.com
- The web sites for the three leading credit bureaus are: http://www.equifax.com ;http://www.experian.com ; and http://www.transunion.com
- You can obtain a free copy of your credit report at: http://www.annualcreditreport.com
- Information on credit counseling and advice can be found at the National Foundation for Credit Counseling: http://www.nfcc.org
- Information on personal finances is available at: http://www.fool.com
- Tips on living within your means can be found at: http://www.pbs.org/affluenza/
- Student loan and financial aid calculators can be found at:http://www.finaid.org/calculators/
- Recommended Readings
- (MD) 2: Monetary Decisions for Medical Doctors is an electronic publication of the Association of American Medical Colleges (AAMC) intended to provide financial planning information for pre-medical students, enrolled medical students, and physicians in residency training.
- Financial Aid Fact Sheets for Prospective, Current, and Graduating Students - https://students-residents.aamc.org/financial-aid/
- Loan Repayment/Forgiveness and Scholarship Programs - https://services.aamc.org/fed_loan_pub/index.cfm?fuseaction=public.welcome&CFID=1&CFTOKEN=C1740D10-F3B2-2DF7-636CD6636C2B28B9