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Home  >  Bankruptcy  >  Plan to reduce loan debt proposed by a medical student

Plan to reduce loan debt proposed by a medical student

A medical student from the University of Iowa met with Governor Terry Branstad the last week of march to promote a plan that would be geared towards helping ease the burden of student loan repayment after graduating from medical school.

27-year-old Shady Henien, a fourth-year medical student at UI Carver College of Medicine introduced a proposal to Gov. Branstad that would utilize private sector investors to finance student loans, decreasing the overall cost of attendance for medical students, which is typically over $150,000. After graduation, according to the plan, students will repay investors in a fixed amount for a predetermined period of time with a 3.4 percent interest rate. This interest rate is half of what medical students paying off federal loans currently face. To draw investors, Henien has proposed providing tax incentives.

Henien hopes to attract the strongest students to under served fields and areas without deterring them with the total cost of attendance of medical school.

While this plan could help many medical students if it was to be instated, the reality is that many former students, including those who were not medical students, currently face mounting financial burdens. While filing for bankruptcy cannot get rid of federal student loan debts, it can help alleviate many other financial burdens a person faces. Thus, if you are in such a situation and need financial assistance, call (319) 632-1400 to explore your options with a lawyer from Hong Law, PLC.