With the recent passage of President Joe Biden’s coronavirus relief program – the “American Rescue Plan Act of 2021” – repayment of federal student loans will remain on hold, interest-free until the end of September. This legislation, in tandem with the CARES Act, means that federal student loan repayments will be suspended for a total of 18 months.
“Given the availability of vaccines, this is expected to be the end of the interest payment holiday,” Alex Macielak, who works forLaurel Road, a KeyBank NA brand that offers student loan refinancing, said in a recent online seminar co-sponsored by WADA. “But it’s worth keeping an eye on the legislative outlook.”
With the recent passage of President Joe Biden’s coronavirus relief program – the “American Rescue Plan Act of 2021” – the forgiveness of federal student loans will be tax-exempt until 2025.
Find out what else Doctors Should Know About Presidential Coronavirus Relief Bill.
Read on for answers to other key questions that medical residents – or any doctor who continues to pay off student loans – might be asking.
- If you have federal student loans as a doctor, you may be hoping to qualify for the PSLF. The goal of this program is to pay as little as possible, so that borrowers could likely save some funds that they might otherwise have spent on loan repayments. Get expert advice on what to do with those dollars and cents.
- For people with private loans, refinancing right now is an obvious decision. For those with federal loans, it doesn’t get better than 0% interest on zero dollar payments, but those days will eventually come to an end. Learn more about the pros and cons of refinancing given historically low interest rates.
- When doctors with federal loans are finally asked to start repaying, they will likely have to make the same number of payments at the same interest rate as before the pandemic. Doctors will lose all current or future federal benefits such as income-based reimbursement, loan forgiveness, and COVID-19 relief. Learn more about this aspect of the problem.
WADA chose Laurel Road as preferred supplier to help you navigate your financial future. WADA members who refinance their student loans withLaurel Road benefit from an additional reduction of 0.25% on the rate via Benefits of AMA PLUS members.
The 0.25% interest rate reduction for AMA members is available on new student loan refinancing applications from an active AMA member. The AMA discount is applied to your monthly payment and will be reflected on your billing statement. The discount will end if WADA advises Laurel Road that the borrower is no longer a member. This offer cannot be combined with other discounts for members or employees.
Learn more about the WADA Residents and Associates Section and how it gives a voice and advocates for issues that affect residents and fellow physicians.