Financial Aid

Graduating Students & Residents

Make sure you're prepared for any financial challenges after graduation with this helpful guide.

Graduating Students & Residents

Make sure you're prepared for any financial challenges after graduation with this helpful guide.

Information for Graduating Students

11/15/24

ED: Income Contingent Repayment Plan Options

The Department of Education has issued an interim final rule (IFR) to amend regulations governing income-contingent repayment (ICR) plans for federal student loan borrowers. This rule adjusts the enrollment deadline for borrowers in the ICR or Pay As You Earn plans, extending the date from July 1, 2024, to July 1, 2027. The change is a temporary measure to ensure compliance with the Department's legal obligation under the Higher Education Act of 1965 to provide borrowers access to ICR plans. These plans were originally slated to sunset for new enrollees on July 1, 2024. The interim final rule is slated for early implementation on or around December 16. That date reflects when the Department anticipates being ready to process borrower applications for these plans. We are still awaiting further operational guidance on this development. Source: AAMC's FIRST Team

10/18/24

ED: Online Application for IDR Plans Back Online

After a period where online IDR (income-driven repayment) plan applications were not being processed, processing has resumed. Borrowers who wish to re-certify their income or enter a new plan can do so here. Source: NASFAA. 

7/31/24

Federal Appeal Court Fully Blocks SAVE Repayment Plan.

Details can be found here. Our office strongly advises that you engage directly with your loan servicer to understand how your repayment plan may be impacted.

4/10/24

Changes to the PSLF Program Begin in May 2024

Please note the new information pertaining to Public Service Loan Forgiveness linked here.

2/20/24

One Time Payment Count Adjustment (source: Higher Education Financial Wellness)

Many student loan borrowers have an opportunity to have their entire student loans cancelled or receive more credit towards cancellation.  But there is an impending deadline that requires immediate action from certain borrowers who have student loans. While any borrower is potentially eligible, older borrowers are more likely to need to take immediate action because of the types of loans these borrowers frequently have. We need your help in getting these borrowers the information they need so that they can get their loans cancelled as soon as possible.

WHAT: The U.S. Department of Education (ED) will be conducting a one-time payment count adjustment. Specifically, ED will give borrowers credit towards loan cancellation through its Income Driven Repayment program (IDR) for repayment periods since July 1, 1994, and for certain deferments and forbearances. IDR programs result in loan cancellation after 20 or 25 years of eligible payments; the account adjustment will ensure borrowers receive credit for the maximum number of
eligible payments based on their loan history. This program has already resulted in cancellation of loans for more than 800,000 borrowers. In addition, IDR plans can make monthly payments more affordable by capping monthly payments based on borrowers’ income and family size, not loan balances.

Most federal student loans qualify for at least one IDR plan and federally held loans will automatically be subject to the pay count adjustment. However, some loans aren’t eligible for these programs unless consumers take further action, and the borrowers who have these loans are the ones we are now trying to reach.

WHO: ED will apply the account adjustment to most federally held student loans. However, consumers who have certain types of loans must first consolidate their loan into a Direct Consolidation loan to maximize the effect of the account adjustment. These loans include, Parent PLUS, Commercially managed Federal Family Education Loan (FFEL), Perkins loans, and Health Education Assistance Loan (HEAL) Program loans.

WHEN: The one-time pay count adjustment will occur in Summer 2024. But borrowers who have non-federally held loans must consolidate their loans into a Direct-Consolidation Loan by APRIL 30, 2024.

ACTION PLAN FOR BORROWERS

(1)   Learn whether you have a loan that must first be consolidated into a Direct-Consolidation Loan to benefit from the account adjustment. To find out call ED at 1-800-433-3243 or go to, studentaid.gov.

(2)   If you have a one of the kinds of loans that requires consolidation, apply to consolidate your loan no later than April 30, 2024 at https://studentaid.gov/loan-consolidation/.

(3)   To continue earning credit towards loan forgiveness after April 30, 2024, enroll in an IDR plan at, https://studentaid.gov/idr/.

ADDITIONAL RESOURCES:
Get more information about the one-time pay count adjustment:

-https://studentaid.gov/announcements-events/idr-account-adjustment

Learn about the benefits and disadvantages of consolidating a student loan:

-https://studentaid.gov/help-center/answers/article/pros-and-cons-of-consolidation

Find more information about student loan forgiveness:

-https://www.consumerfinance.gov/paying-for-college/student-loan-forgiveness/

Learn how to enroll in an Income Driven Repayment Plan:

-https://www.consumerfinance.gov/ask-cfpb/how-can-i-enroll-in-income-driven-repayment-en-2138/

Get help filling out consolidation forms:

-Call 1-800-4-FED-AID (433-3243)

Latest News

Student Loan Scams

As repayment for student loans begins, please be cautious of scams from malevolent actors.

  1. Rely on information from trusted sources: studentaid.gov; https://students-residents.aamc.org/financial-aid.
  2. Protect your personal information including FSA account information; be especially cautious if you receive an unexpected phone call.
  3. Loan forgiveness or debt reduction claims except official information from the Department of Education should not be trusted.

Biden Administration Introduces New Borrower Relief Efforts

On the heels of the June 30th U.S. Supreme Court ruling striking down the Biden Administration’s debt forgiveness plan,
the U.S. Department of Education announced several new efforts to pursue debt relief for borrowers:

  • The Saving on a Valuable Education (SAVE) plan will serve as the default Income-Driven Repayment plan once student loan payments resume this fall. Touted as the “most affordable repayment plan in history”, the SAVE plan increases the non-discretionary income threshold from 150% to 225% of the Federal Poverty Guideline; ceases charging monthly interest not covered by the borrower’s payment under the SAVE plan which will eliminate growing unpaid interest; and allows married borrowers who file their taxes separately to exclude their spouse’s income from the SAVE payment calculation. Borrowers will see additional benefits July 1, 2024, when the SAVE plan is fully implemented. Those interested can sign up for the SAVE plan now via the Federal Student Aid website.
  • The Department will conduct a new negotiated rulemaking using authority under the Higher Education Act to seek loan forgiveness following the Supreme Court’s ruling on debt forgiveness. The Department intends to regulate on the authorities granted under section 432(a) of the Higher Education Act. This initiates the standard federal regulatory process for changes to student aid and could take several months before we see an outcome.
  • The Department will provide a 12-month “on-ramp” (October 1, 2023 to September 30, 2024) for borrowers resuming repayment in October. During this transition period, monthly payments will be due, and interest will accrue; however, interest will not capitalize at the end of the on-ramp period. Additionally, borrowers will not be reported to credit bureaus, be considered in default, or referred to collection agencies for late, missed, or partial payments during the on-ramp period. The Department indicates that borrowers who can pay, should do so, but flexibilities will be in place for borrowers needing assistance.

Source: https://studentaid.gov/announcements-events/save-plan?utm_source=mcp&utm_medium=email&utm_campaign=camp_908

November 2022

Update on the Biden-Harris Administration’s Student Debt Relief Plan

As you may be aware, the federal student loan repayment pause was scheduled to end on December 31, 2022, but has been extended.  The resumption of loan repayment is tied to a resolution of two ongoing legal challenges stopping the implementation of the debt cancellation program. Loan repayment will resume 60 days after the debt cancellation litigation is resolved, OR “if the program has not been implemented and the litigation has not been resolved by June 30, 2023 – payments will resume 60 days after that.”


Brown's repayment relief measures for Perkins and Institutional loans ends on December 31, 2022. These measures included no late fines and 3-month forbearances available upon request.  HRSA repayment relief measures for PCL and LDS loans ends on December 31, 2022 and include automatic 0% interest rate and automatic forbearance of any past due loans. HRSA has not yet made an announcement concerning potential extension.

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White House Announces Another Extension of Student Loan Payment Pause as Cancellation Plans Face Legal Challenges

By Hugh T. Ferguson, NASFAA Senior Staff Reporter

The White House is providing a new roadmap to the restarting of federal student loan repayments and interest accrual now that the administration’s debt cancellation program is stalled by a pair of legal challenges.

Payments were slated to resume on Jan. 1, 2023 — presumably after eligible borrowers had the opportunity to both apply for and receive up to $20,000 in debt cancellation prior to reentering repayment.

The Department of Education (ED) on Tuesday said it will instead offer another short-term extension that ties the resumption of loan repayment to a resolution of two ongoing legal challenges, which have halted the administration from implementing the debt cancellation program. The first prevented the administration from carrying out the relief and is currently before the Supreme Court, while the second is making its way through the appeals process and resulted in the department removing the debt relief application from its website.

“Payments will resume 60 days after the Department is permitted to implement the program or the litigation is resolved, which will give the Supreme Court an opportunity to resolve the case during its current Term,” ED’s notice reads. “If the program has not been implemented and the litigation has not been resolved by June 30, 2023 – payments will resume 60 days after that.”

According to the administration over 26 million people have provided ED with the necessary information to be considered for the program, and 16 million of those applicants were approved before the courts prevented the administration from administering the relief.

ED has sought to ensure that the wind-down of the nearly three-year pause on loan payments does not negatively impact borrowers, especially since most borrowers have not been in repayment status or in contact with their servicers.

“Borrowers can use the additional time to ensure their contact information is up to date with their loan servicers and consider enrolling in electronic debit and income-driven repayment plans to support a smooth transition to repayment,” the announcement read.

While this latest extension gives borrowers additional time to assess their finances, it is unclear how the legal challenges to the program will play out, or if the administration and the courts will come to a resolution in the near future.

“Restarting payments in January, before the courts have fully determined the legality of this program, could result in even more confusion for borrowers and challenges for financial aid administrators who provide counseling,” said NASFAA President and CEO Justin Draeger. “We hope the courts will resolve these issues quickly.”

Prior to Tuesday’s announcement Republicans on the House Education and Labor Committee outlined seven reasons why the administration should not offer another extension of the payment pause, citing inflation, costs to taxpayers, and confusion for borrowers and servicers, among other issues.

Following the announcement Sen. Patty Murray (D-Wash.), chair of the Senate education committee who has been lock-step with the administration’s actions concerning the payment pause, applauded the White House’s decision.

“With borrowers in limbo while this makes its way through the courts, I’m glad the administration has moved to extend the student loan pause and take some stress off the shoulder of borrowers in Washington state and across the country,” Murray said. “I’ll keep working with the Administration and my colleagues to fix our broken student loan system for everyone and in the long-term.”

 

Publication Date: 11/23/2022

September 2022

Update on the Biden-Harris Administration’s Student Debt Relief Plan

U.S. Department of Education sent this bulletin at 09/29/2022 11:31 AM EDT

Last month, President Biden announced his Administration's plan to provide student debt relief to eligible borrowers and give working and middle-class Americans more breathing room. You asked for updates on the Administration’s plan. This email contains additional information, and we will provide you weekly updates as more information becomes available.

Who's eligible

You are eligible if you have most federal loans (including Direct Loans and other loans held by the U.S. Department of Education) and your income for 2020 or 2021 is either:

  • Less than $125,000 for individuals
  • Less than $250,000 for households

If you are a dependent student, your eligibility is based on your parental income.

What you might be eligible for

  • Up to $20,000 in debt relief if you received a Pell Grant in college
  • Up to $10,000 in debt relief if you didn’t receive a Pell Grant

How it’ll work

  • In October, the U.S. Department of Education will launch a short online application for student debt relief. You won’t need to upload any supporting documents or use your FSA ID to submit your application.
  • Once you submit your application, we’ll review it, determine your eligibility for debt relief, and work with your loan servicer(s) to process your relief. We’ll contact you if we need any additional information from you.

What’s next

  • Right now, you don’t need to do anything! We will contact you when the sign-up period for student debt relief opens.
  • We will send you regular updates with more details over the coming days, as we near the application period, which will begin in October 2022 and last through December 2023.
  • In the meantime, visit our Frequently Asked Questions page to find out more information on the student debt relief program.

Consolidation loans are also eligible for relief, as long as all of the underlying loans that were consolidated were ED-held loans and were disbursed on or before June 30, 2022. Additionally, consolidation loans comprised of any FFEL or Perkins loans not held by ED are also eligible, as long as the borrower applied for consolidation before Sept. 29, 2022.

As of Sept. 29, 2022, borrowers with federal student loans not held by ED cannot obtain one-time debt relief by consolidating those loans into Direct Loans.

Borrowers with FFEL Program loans and Perkins Loans not held by ED who have applied to consolidate into the Direct Loan program prior to Sept. 29, 2022, are eligible for one-time debt relief through the Direct Loan program.

ED is assessing whether there are alternative pathways to provide relief to borrowers with federal student loans not held by ED, including FFEL Program loans and Perkins Loans, and is discussing this with private lenders.

Beware of Scams

You might be contacted by a company saying they will help you get loan discharge, forgiveness, cancellation, or debt relief for a fee. You never have to pay for help with your federal student aid. Make sure you work only with the U.S. Department of Education and our loan servicers, and never reveal your personal information or account password to anyone.

Our emails to borrowers come from noreply@studentaid.gov, noreply@debtrelief.studentaid.gov or ed.gov@public.govdelivery.com. You can report scam attempts to the Federal Trade Commission by calling 1-877-382-4357 or visit reportfraud.ftc.gov.

The Health Resources and Service Administration’s (HRSA’s) Bureau of Health Workforce (BHW) would like to thank you and all those people involved in the success of the revolving loan program at your school.

HRSA understands and acknowledges the critical role you play as recipient institutions and the unexpected hardships you and your students have faced, during this uncertain period.

We continue to support students and institutions during this recovery period. HRSA has approved the extension of the temporary interest waiver and administrative forbearance for borrowers with loans made under the revolving loan programs to mirror the actions of the Department of Education through December 31, 2022. These policies apply to borrowers from the following programs:

  • Health Professions Student Loan (HPSL);
  • Primary Care Loan (PCL);
  • Loans for Disadvantaged Students (LDS);
  • Nursing Student Loan (NSL)

HRSA is providing this information to you as a recipient organization of one or more of these programs. If there are any additional changes and updates to our programs, they will be posted on our website.

If you use a third-party loan servicer, you should communicate this information to them. For more information about the extension, please visit HRSA’s webpage: HRSA BHW Student Loan Q and As.

August 2022

The Biden-Harris Administration's Student Debt Relief Plan Explained

The Biden-Harris Administration is working to quickly implement improvements to student loans. If you'd like to be the first to know, sign up for email updates from the U.S. Department of Education.

Detailed information on one time debt forgiveness eligibility

January 2022

FSA Announces Transfer Update on FedLoan Accounts

By Hugh T. Ferguson, NASFAA Staff Reporter

Federal Student Aid (FSA) in a recent updated notice announced that the student loan servicer MOHELA will be servicing certain types of loans previously administered by FedLoan (PHEAA), which elected to not extend its servicing contract and is currently in the process of exiting the federal student loan portfolio.

“We have also determined that MOHELA will be the future servicer for borrowers in the Public Service Loan Forgiveness (PSLF) Program” FSA wrote in an updated announcement published Dec. 22, 2021. “All borrowers enrolled in PSLF recipients will remain with FedLoan Servicing until they are transferred to MOHELA later in 2022.”

FSA also indicated that it would provide updates to this webpage in order to inform borrowers of impending details concerning loan transfers.

With the federal student loan payment pause now extended through May, the Department of Education (ED) has additional time to sort through administrative hurdles that could make resuming student loan repayment a bumpy process.

Additional Resources

Financial Services from External Sources: The OFA of The Warren Alpert Medical School has learned free financial consultations are being offered at the medical school, promoted by external companies.  We are posting this note to alert you that OFA does not endorse these services nor do we know about them in advance of their visit to our campus.  We caution students and residents to make informed decisions, shop around for advice and educate yourself before paying an advisor to help navigate the loan repayment process.

April 2018:  A $350 million fund has been established to help borrowers in Public Service Loan Forgiveness (PSLF) meet program requirements. Please read the NY Times article detailing this fund and how it may benefit you.  

Graduated and Working in Rhode Island?  Consider the 2018 Wavemaker Fellowship where you could receive an annual refundable tax credit against your RI income tax to defray the cost of student loan repayments.  Applications for 2018 available January 2018.  For more details, please visit their website.

Fannie Mae Introduces Innovative Solutions for Borrowers with Student Loan Debt:  Innovations Help Borrowers Pay Down Student Debt and Overcome Debt Related Obstacles When Buying a Home article is worth a read.

Exit Program: The following presentation, Loan Repayment; Building a Strategy, was offered to the MD'19 class on March 27. If you were unable to attend and/or need a refresher, please view at your leisure. 

Month-by-Month To-Do List

A helpful guide of deadlines, items to consider, relevant forms, and other information you'll need during the financial aid process.

AAMC Resources on Handling Finances During Residency are available on their website.

Physicianloans has increased their maximum loan amount up to $750K with no money down for qualified homebuyers.

Timeline for Residents

Fall of Intern Year  

Select a repayment plan for your Direct/PLUS Loans while your loans are still in the grace period. Decide whether you would like to consolidate and combine your Perkins or LDS Loans with your Direct/PLUS Loans. Consolidation allows you to roll these into one new loan that you can repay using one of the income-driven repayment plans.

After November 15th, complete and submit a Brown Residency Deferment Application for your Brown Institutional Loans. Complete your portion of the form and forward it to your residency program coordinator. The coordinator will need to complete and certify/stamp the bottom portion of this form.  Then return to the Brown Loan Office for processing.  New paperwork must be submitted each year.  Have more questions?  Please visit the Brown Loan Office website.

The first payment is due in December on Direct/PLUS loans and must be sent to your federal loan servicer.  

Winter of Intern Year  

The first payment is due on January 1st for your Brown Institutional Loans and must be sent to the Loan Office, unless you have completed the residency deferment process above. Visit the Heartland ECSI website to review your loans and make payments online.

The first payment is due on April 1st for your Perkins Loans and must be sent to the Loan Office, unless you have completed the forbearance process above.  Visit the Heartland ECSI website to review your loans and make payments online.  Have you considered consolidating your Perkins loans into at least one of your Direct loans?  This would reclassify your Perkins loans as federal loans and an IDR and possible PSLF would then be available.

Ongoing During Residency 

When you've chosen an income driven repayment plan (IBR, PAYE, or REPAYE) for your federal loans, remember that you will need to verify your income each year, as early as August and September.  So, be careful to pay attention to emails you receive from your servicer. 

Consider completing the Public Service Loan Forgiveness (PSLF) Certification form with your employer annually to keep track of months earned.  See form below-make sure all section are completed prior to submitting.   

You must plan on reapplying if you wish to extend a deferment or forbearance for your Brown loans. The deferments and forbearances are typically granted for 6 to 12 months at a time. (Ex: The Medical Loan offers 36 months of residency deferment. If your initial residency deferment is granted for 12 months, you will need to complete the entire deferment process again each November.)

Helpful Links