[Congressional Record Volume 151, Number 78 (Tuesday, June 14, 2005)]
[Senate]
[Page S6489]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DODD (for himself, Mr. Jeffords, Mr. Kerry, and Mr. 
        Feingold):
  S. 1246. A bill to require the Secretary of Education to revise 
regulations regarding student loan payment deferment with respect to 
borrowers who are in postgraduate medical or dental internship, 
residency, or fellowship programs; to the Committee on Health, 
Education, Labor, and Pensions.
  Mr. DODD. Mr. President, I rise today with Senators Jeffords, Kerry 
and Feingold to introduce the Medical Education Affordability Act, 
MEAA. The purpose of this bill is to make medical and dental education 
more affordable.
  Upon graduation from college, students who demonstrate economic 
hardship are eligible to extend their student loan deferment for up to 
3 additional years. Using the economic hardship deferment, a formula 
that takes into account earnings and debt level, the majority of 
medical and dental residents defer repayment of their student loans 
until the end of their residency period. Unfortunately, for those 
specialties that require a residency of more than 3 years--OB/GYN, 
psychiatry, and general surgery to name a few--student loan repayment 
begins before a resident's medical or dental education is completed. 
This situation creates an enormous financial burden for residents who 
have, in most cases, incurred significant debt. In 2004, the average 
indebtedness for graduating medical students was $115,000, for 
graduating dental students it was $122,263. While lenders are currently 
required to offer forbearance to medical and dental students, this is 
an expensive option as interest continues to accrue and may be 
capitalized more often.
  The Medical Education Affordability Act would solve this problem by 
extending the economic hardship deferment to cover the entire length of 
a medical or dental residency. By altering the definition we are 
removing a significant financial obstacle facing students with 
residency periods longer than 3 years. I want to stress again, 
residents will still have to demonstrate economic hardship--MEAA only 
extends the deferment for borrowers that continue to meet the debt-to-
income requirements of the economic hardship deferment.
  Mr. President, I hope my colleagues will join me in support of 
medical education by signing onto this bill. By working together, I 
believe that the Senate as a body can act to ensure that more 
individuals are able to pursue a full range of medical specialties.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1246

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``Medical Education 
     Affordability Act''.

     SEC. 2. REGULATION REVISION REQUIRED.

       (a) Action Required.--Not later than 90 days after the date 
     of enactment of this Act, the Secretary of Education shall 
     revise the regulations of the Department of Education that 
     are promulgated to carry out the provisions relating to 
     student loan repayment deferment under the Federal Family 
     Education Loan Program under part B of title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1071 et seq.), the William 
     D. Ford Federal Direct Loan Program under part D of title IV 
     of such Act (20 U.S.C. 1087a et seq.), and the Federal 
     Perkins Loan Program under part E of title IV of such Act (20 
     U.S.C. 1087aa et seq.), which are promulgated under sections 
     682.210, 685.204, and 674.34 of title 34, Code of Federal 
     Regulations, to comply with the requirements of subsection 
     (b).
       (b) Requirements.--The student loan repayment deferment 
     regulations shall be revised to provide, with respect to a 
     borrower who is in a postgraduate medical or dental 
     internship, residency, or fellowship program, that if the 
     borrower qualifies for student loan repayment deferment under 
     the economic hardship provision--
       (1) the deferment shall be available for the length of the 
     internship, residency, or fellowship program if the program--
       (A) must be successfully completed by the borrower before 
     the borrower may begin professional practice or service; or
       (B) leads to a degree or certificate awarded by a health 
     professional school, hospital, or health care facility that 
     offers postgraduate training; and
       (2) the borrower shall not be required to apply annually 
     for such student loan repayment deferment during the length 
     of the program.
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