Feds try to embarrass defaulters into repaying loans

Article Abstract:

The Health Resources and Services Administration released the names of 3,900 former medical students who have defaulted on their Health Education Assistance Loan program loans. The government's intention is to shame defaulters in their local communities into paying back the amounts remaining on their loans. A previous publishing of names in 1993 resulted in 1,600 defaulters negotiating payment schedules and paying back in excess of $10 million. The American Medical Assn (AMA) does not approve of the practice, claiming that there is too much room for error. The AMA also contends that the number of physicians on the list is very low compared to other medical field practitioners.

Administration of Education Programs, Offices & clinics of medical doctors, Physicians & Surgeons, Offices of Physicians (except Mental Health Specialists), Student Loans & Grants, Management, United States. Health Resources and Services Administration

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Plan may start loan interest rising before school ends

Article Abstract:

Republicans on the House budget committee have proposed requiring students to begin paying interest on their government loans, rather than waiting until after graduation. About $9.5 billion of the federal budget would be saved by discontinuing the subsidy that pays interest while students are in school, according to Rep John Kasich. Medical students may be singled out to make these payments, even if the law is modified by the time it is passed, according to the AMA Medical Student Section.

Public Finance Activities, Colleges, Universities, and Professional Schools, Budget Process, Colleges and universities, Student Loans & Scholarships, Economic policy, Budgeting, Kasich, John R., United States. Congress. House. Committee on the Budget

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Bill would protect some student loan deferments

Article Abstract:

The Senate passed a bill that would end student loan deferments, and the House is considering a similar bill. Both bills would end the practice of allowing students to defer payments on their student loans for any reason, including medical residency. The Senate version, however, will apply only to students taking loans after July 1, 1993, while the House version would end deferments for everyone immediately.

Student financial aid, Student financial aid administration

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