BUSINESSBorrowers can cash in on student loan consolidationPersonal Finance. By Katherine Vogt, amednews staff. May 17, 2004. Physicians have plenty to celebrate as they finish their extensive medical training, but the looming onset of school loan repayments can cast a shadow on the party. The typical American physician graduates from medical school with more than $109,000 of debt, according to the Assn. of American Medical Colleges. And though most of that debt is likely in the form of low-interest student loans, if it isn't handled properly, it can cause financial woes for years. But experts say there may be some cause for cheer. With interest rates at historic lows, students can take advantage of loan consolidation to lock in rates that save money, or at least make the monthly loan repayments less burdensome. Though it is not right for everyone, experts say loan consolidation is worthy of consideration by borrowers searching for debt relief. "It's worth it to take a look. Every person has got to do what they feel is right. But it [can] really be a win-win for the borrower," said Paula Craw, director of student financial services for the AAMC. The process of loan consolidation is fairly simple: It involves refinancing multiple loans with one new loan. The goal is to make monthly payments smaller and more manageable. "It's a reorganization of your loans, lumping them all together so it's easier to manage. You're only dealing with one lending institution, and in most cases, at least now, you'll probably get lower interest rates and lower monthly payments," said Brian O'Connell, a former Wall Street bond trader who is now an author and consultant in Doylestown, Pa. "The simplicity is hard to argue with." [...]Full text of American Medical News content is available to AMA members and paid subscribers.
Copyright 2004 American Medical Association. All rights reserved.
|
Feature articlesHealth reform review The Massachusetts experience Litigation stress Being sued is personal as well as professional Comprehensive coverage
Most-viewedNov. 23 issueAMA meeting: Delegate vote refines AMA stance on system reform Liability premiums stay stable, but insurers warn this might not last Columns and series
From the vault: 5 years agoState tort reform ballot wins set stage for further battles Nov. 22, 2004 
|
SHARE
