Statement From The President On The AMSA Loan Consolidation Program, USA

Loan consolidation is an important step in dealing with your student debt. AMSA members are eligible for the AMSA (American Medical Student Association) Loan Consolidation Program. It is important to understand loan consolidation and the real terms of any loan or consolidation contract. I want to provide you with some general information about loan consolidation to make this process easier for you.

After you graduate, you have a six-month “grace period” before you are required to being repaying Stafford loans. During this time, you may apply for a loan consolidation program, which structures the repayment of your loan. All consolidation applications must be completed within 180 days (including holidays and weekends) from your “separation date,” which is your graduation day, or the day you leave school or drop below half-time student status. AMSA members can call an AMSA Loan Consolidation Program Consolidation Counselor to get details on their separation dates, Department of Education PINs and the terms of their student loans.

It is important that you know your separation date, because if you complete your consolidation application during your grace period, you get a lower rate. Consolidate before your grace period expires and you can lock in a rate as low as 6.625% and even lower, 5.375% with discounts. If you hesitate or procrastinate and let your 180 days expire, the variable Stafford loan rate jumps to the repayment period rate of 7.14%. Consolidating after your grace period, your consolidation fixed rate may rise to 7.25%.

There are many consolidation programs that promise low rates or special offers. It is imperative that you read the fine print before considering any loan program. The AMSA Loan Consolidation Program differs from other loan programs in that it offers a rate reduction for on-time payments. You will receive a 1.0% rate discount after after your first 36 regular on-time payments. This discount is guaranteed by the AMSA Loan Consolidation Program - once you have qualified for the 1.0% discount, you have it for the life of the loan, even if a later payment is late. Your loan contract will be rewritten to reflect this discount - it is not just added as an addendum to your original loan.

It is important that you understand the terms and language of loan contracts. An offer that seems to good to be true is often revealed to be just that in the fine print. AMSA Loan Consolidation Program Consolidation Counselors can answer any questions you have and provide you with honest, accurate information about loan consolidation, whether or not you choose to consolidate with AMSA. I encourage you to take advantage of this great service - repaying your student loans will be one of the greatest tasks you face after graduation.

I encourage you to get all the information. For a clear look at consolidation programs, read the “AMSA LOAN Consolidation Guide: Consolidation Discounts - TOO GOOD TO BE TRUE?” at http://www.amsaloanconsolidation.com/primer_3.html or call to speak with an AMSA Consolidation Counselor.

Counselors can be contacted by calling toll-free 1-800-741-4704 Monday through Friday 9:00 AM - 11:00 PM (ET) and Saturday 9:00 AM - 5:00 PM (ET). Be sure to mention AMSA.

About the American Medical Student Association

The American Medical Student Association (AMSA), with more than a half-century history of medical student activism, is the oldest and largest independent association of physicians-in-training in the United States. Founded in 1950, AMSA is a student-governed, non-profit organization committed to representing the concerns of physicians-in-training. With more than 68,000 members, including medical and premedical students, residents and practicing physicians, AMSA is committed to improving medical training as well as advancing the profession of medicine. AMSA focuses on four strategic priorities, including universal healthcare, disparities in medicine, diversity in medicine and transforming the culture of medical education. To learn more about AMSA, our strategic priorities, or joining the organization, please visit us online at http://www.amsa.org.

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