Feds changes rules for MD's

[Topaz]

The Feds have changed the rules about MD's or interns to pay back their students loans now instead of waiting until they have completed their courses, at least in Saskatchewan. I'm wondering if this is across the board into all the provinces or just Sask.? http://ca.news.yahoo.com/s/cbc/100501/canada/canada_saskatchewan_sk_medical_residents_loans1051

[Bonam]

Seems reasonable to me. If they are working, they can start paying back the loans. MD students already receive very favorable terms for their loans, including higher lending limits and lower interest rates than most other students.

Of course, changing the rules without adequate warning can always be disruptive. That being said, there is adequate warning in this case. The way the Canada Student Loans program works is that once you are no longer considered a student, you have a 6 month grace period before you have to start repaying. So even if the rule change is immediate, they have at least half a year. Furthermore there are numerous options for interest relief for those who truly cannot pay back the loans. I know because I just finished paying off my student loans last year.

Oh and that girl who has $250k of student loans is clearly completely irresponsible. How the heck do you get $250k of student loans? Buy a house while you are a student or something? We are talking Canada here, tuition is low and furthermore its almost impossible to not get a scholarship to fund your post-undergrad education. Most people I know graduated with no more than 20-40k of loans after 6 years. And the one person I know who is studying to become an MD is debt free due to his summer research positions, which pay very well.

Anyway, this is already the case for other professions. For example, engineers are not exempt from repaying their student loans while they are EITs (Engineers in Training), even though salaries for EITs are as low / lower than what is mentioned for residents in that article.

Edited May 5, 2010 by Bonam

[Shwa]

The Canada Student Loan program is federal so it applies to all students in every province.

Interesting that they used an atypical example to describe the situation. Really, as Bonam says, just exactly how does a student end up with 250k in loans? But it doesn't say they are Canada Student Loans and perhaps they are from other financial institutions. I don't think this is a reasonable example to base the story on.

I think a starting salary of 48k is reasonable enough to start paying back loans. There are lots of employed people who work in a "learning organization" and continue to learn or be trained while making a salary and they are not called "students."