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PRINCIPLES REGARDING THE FINANCING OF MEDICAL EDUCATION

The American Medical Student Association:

1.             RECOGNIZES that equitable access to medical education is essential to guarantee diversity of the physician workforce. Medicine will not be able to provide for the health needs of our complex society if it does not reflect society’s demographics. (2006)

2.             BELIEVES that equitable access to medical education is not simply a matter of providing college-graduates with adequate financial aid, it is also important to consider the pipeline to medical school and prioritize equitable access to undergraduate college education. (2006)

3.             FURTHER BELIEVES that access to higher education is a right and should only depend on a student’s performance, not on her or his ability to pay tuition. (2006)

4.             SUPPORTS increased financial education for medical students in order to better prepare students to make more advantageous financial decisions, (2006)

5.             In regard to “Aid-for-Service” Programs

a.             SUPPORTS the National Health Services Corps (NHSC) and other loan repayment programs, such as the NIH Scholars program, (2006)

b.             CALLS FOR an increase in the number of young physicians that can receive NHSC loan repayments. (2006)

c.             SUPPORTS the additional expansion of the NHSC to include medical specialties outside of primary care that are also in shortage in underserved areas, such as general surgery and mental health services, (2006)

d.             ENCOURAGES the creation of other loan repayment programs to expand the reach of existing programs.  These include a “Global Health Services Corps” where students may receive loan repayments for providing service abroad, and state- and municipal-based loan repayment programs for needed physicians, (2006)

e.             RECOGNIZES that loan repayment programs are optimal because they have less attrition than scholarship programs, but ACKNOWLEDGES that programs must be able to provide an initial “up-front” scholarship to offset the high costs of starting medical school. (2006)

f.              BELIEVES that “Aid-for-Service” programs not only increases access to medical education, but also directly addresses issues of disparities in access to healthcare. (2006)

6.             RECOGNIZES the importance of establishing coalitions and close working relationships with other national student organizations working on the issue of equitable access to education. (2006)

7.             In regard to loan repayment:

a.             SUPPORTS the concept of an educational opportunity bank for medical students where educational loans, interest and administrative costs can be repaid, once in practice, on an income contingent basis;

b.             SUPPORTS the deferment of payment on the principal and accrued interest of educational loans incurred for premedical and medical education until the completion of medical training, including internship and residency;

c.             SUPPORTS the concept of availability of student loan consolidation, refinancing and graduated repayment; (2004)

8.             URGES that medical schools cooperate with the federal government to improve collection practices on student loans;

9.             In regard to loan source, amount, and development:

a.             SUPPORTS the concept that a multiplicity of sources for financing medical education be available;

b.             URGES that ceilings on federally issued loans must be sufficient to meet the actual needs of students and their dependents, as determined by the financial aid officer at each medical school;

c.             URGES the continued support and development of low interest loan programs, such as the Health Professions and Federal Insured Student Loan programs, which offer the medical student a fair and practical solution to the funding of medical education, and further URGES that high interest loan programs, such as the Health Education Assistance Loan, established by PL 94-484, be revamped so that they, too, can provide reasonable sources of money;

d.             SUPPORTS federal direct lending programs for students enrolled in medical schools, and for medical students pursuing other advanced degrees. (1997)

e.             BELIEVES that in-school loan consolidation would substantially improve the ability of medical school graduates to manage their debt, thus allowing them more financial flexibility to choose primary care specialties and to work in underserved communities; (2005)

f.              URGES the federal government to allow in-school consolidation of student loans for students enrolled at Federal Family Education Loan Program (FFELP) medical schools and Direct Lending (DL) medical schools. (2006)

10.           CONDEMNS any use of a student’s military draft registration status as a criterion in the eligibility for, or awarding of, financial aid.

a.             SUPPORTS the continuation of the Department of Defense’s Armed Forces Health Professions Scholarship Program;

11.           In regard to taxation:

a.             SUPPORTS the tax deductibility of interest paid on student loans; (2005)

b.             SUPPORTS legislation, which would make the cost of tuition, books and essential educational materials tax deductible for students engaged in graduate and professional education;

12.           URGES that childcare expenses be included in the assessment of financial aid needs for all medical students;

13.           SUPPORTS the funding, by state governments, of a substantial portion of the costs of private medical schools within their jurisdiction;

14.           SUPPORTS a special, permanent line item within the overall Department of Health, Education and Welfare budget for both Georgetown and George Washington University medical schools, in addition to the line item already included for the Howard University School of Medicine, due to the unique stateless status of these schools;

15.           ESTABLISHES the goal of increasing involvement and financial support from physicians to help create affordable financing of medical education, especially for the financially disadvantaged; (1985)

16.           BELIEVES THAT in the event of the acquisition or management of medical school teaching hospitals and affiliate teaching hospitals by for-profit health-care corporations, the corporation should:

a.             Demonstrate sufficient concern for the care of the medically indigent and other medically underserved populations.

b.             Demonstrate interest in maintaining graduate and undergraduate teaching programs in health sciences through adequate monetary commitment.

c.             Uphold an emphasis on patient advocacy and medicine’s humanitarian ideals. (1986)

17.           SUPPORTS the interest exemption on subsidized loans during the time period a student is attending either undergraduate or graduate medical school. (1995)

18.           In regard to the use of endowments:

a.             CONDEMNS the use of research and medical endowment funds or its interest to finance activities outside the endowment's original purposes when those purposes have not been achieved; (1999)

b.             STRONGLY SUPPORTS states' attorney generals to vigorously pursue institutions and any of their individuals that engage in such activities; (1999)

c.             SUPPORTS legislation that:

1.             restricts the use of interest income from endowments to fund activities outside the medical institution; (1999)

2.             bans the use of interest income from research and scholarship endowments for any activity outside of its original intent; (1999)

3.             makes institutions and individuals involved in such activities financially liable for misappropriated funds. (1999)

19.           CONDEMNS federal or state government cuts to programs aimed at increasing access to medical education; (2006)

20.           CONDEMS the practice of retroactive tuition hikes; (2006)

21.           DEMANDS renewed funding for the Federal Perkins Loan Program and increased funding for the Federal Stafford Loan Program; (2006)

22.           SUPPORTS inclusion of tuition transparency into the LCME’s accreditation criteria of medical schools; (2006)

23.           URGES the creation of State and Federal grant-based financial aid programs for medical students. (2006)