Help with medical school loans

Advice on making your children's school loans more affordable, lowering mortgage payments and more.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Gerri Willis, CNN personal finance editor

home_rich_cover.03.jpg
For more information on managing your largest investment, check out Gerri Willis' 'Home Rich,' now in bookstores.

NEW YORK (CNNMoney.com) -- Question 1. I have 8,000 dollars saved but it is just sitting in a savings account earning almost no interest. Is there something better that I can put my money into that is safe? -- Cory

Well, first off Cory, there's no such thing as a perfectly safe investment, but some products are safer than others. Bank accounts and CD yields may give you up to 2% on your money. And it doesn't get any safer than that. But inflation can eat away at those returns.

You may consider putting some of that money toward your 401(k) if it's offered or an IRA. If you have a long investment horizon of over 10 years, your likely to reap the benefits of compound interest and still make conservative investments. Otherwise look at inexpensive mutual funds or index funds from low-cost companies like Fidelity, Vanguard or T. Rowe Price.

Question 2. My son has mortgage that is more than the value of the property. He is able to just make the payments. What are his options to reduce his mortgage payment; principle reduction, lower interest rate, etc. -- Mary, Arizona

Your son's first step should be to get on the phone with his lender. Especially if there's a chance he'll miss a payment. The lender may offer a lower repayment schedule.

The government also recently announced a program that can help homeowners refinance their homes, even if they're a bit 'upside down' on the mortgage -- as you indicate your son is.

For more information about that program, go to makinghomeaffordable.gov or call the Homeowner's Hope Hotline at (888) 995-HOPE

Question 3. We have two sons in medical school. Both have medical school loans. How can they get help paying this loan back? -- Francine, NC

There are a number of student loan forgiveness programs in health care. The National Health Service Corps is an example of a forgiveness program for doctors and nurses who practice for a set number of years in areas that lack adequate medical care.

The American Association of Medical Colleges has a database of state and other loan repayment programs for medical school students. Go to AAMC.org for more information. To top of page

Got a financial dilemma? Go to cnnmoney.com/helpdesk to submit questions, read the Help Desk articles and check out new Help Desk videos. And tune in to CNN's Newsroom Tuesdays and Fridays, when Gerri Willis and other experts answer your questions.
Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
For sale: Steve McQueen's 1967 Ferrari The red 1967 sports car is expected to fetch millions at auction. More
The 13 most WTF gadgets From the weird to the gross, these 13 gadgets will make you wonder why they even exist. More
Best-loved cars in America These cars and trucks topped J.D. Power's APEAL survey, which measures how much owners like their new vehicles. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.