Question:
Dear Steve,
$568,000 in student loan debt between undergraduate and medical school. I went to St George’s University a massive for-profit medical school in Grenada.
The education was fine, but the cost of attending was extremely misleading, and I was told I could do my clinicals in Connecticut (my home state), which would have saved me boatloads of money on housing, food etc.
That did not turn out to be the case at all. Clinical was wherever the school had partnering hospitals for each rotation…. Which led me to 5 different states in 2 years. When you need to find housing quickly, and for the short term, it’s much more expensive than finding an apartment and signing a 1-year lease agreement.
I don’t have a way to prove that the university was misleading. It was a series of conversations with program staff from the university because their website was too vague to be able to make a solid plan for the four years.
I’m trying to tackle my debt the best I can. It just doesn’t even seem mathematically possible that I owe that much!! Most of my loans are with aidvantage now $545,000 (see photo), I have 3 with Navient: 1 Stafford subsidized, 1 Stafford unsubsidized at 6.8% interest, and 1 “signature student private” loan at 10.625% interest. There has been a ton of moving around of my loans to different servicers…. None of which I understand.
My question is, are there any other resources for helping to clear some of this student debt? I am already aware of the various payment plans they offer.
Also, how would you approach this? This is very overwhelming.
I appreciate your expertise and willingness to help!
Rose
Answer:
Dear Rose,
You are lucky you even got your clinicals in the US. Other past students never could land an internship back in the US, and the education was worthless to become a doctor here in the United States.
If you feel the school misled you, I will urge you to file a Borrower Defense to Repayment application to attempt to get your federal student loans forgiven.
There is no real downside to filing it. If your loans get put on hold while it is processed, you want to ensure interest is not piling up. If it is still being added, continue to make payments.
Because of the number and mix of your loans, I can’t give you a simple answer like do this one thing. The best approach is going to be multi-phased and customized.
Your best bet is to work with Damon Day to create a giant unique, and comprehensive solution for all your many loans. The private one is interesting and adds a different twist.
I looked around and found this bankruptcy case previously filed that is being appealed. The former St. George’s student is trying to get her student loans discharged in bankruptcy. The case is ongoing.
There is also this FTC announcement naming St. George’s University, School of Medicine, Inc. on the Penalty Offense list.

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Hi Rose,
I have over $500k in federal student loan debt. I’m in the PSLF (Public Service Loan Forgiveness) program on an associated income-based repayment (IBR) plan. If you work for a nonprofit (hospital or other eligible nonprofit organization) at least 30 hours per week for 10 years while making on-time IBR payments, your federal loans can be wiped out at the 10-year mark and the forgiven balance will not become taxable income. As for the Signature Student Loan, it’s quite possible it will be dischargeable in a bankruptcy proceeding in the near future. I hope this helps. Best of luck to you!
Gayl, thank you for the advice for Rose. What scares me about PSLF is how much the last republican administration screwed with the program, approved almost none of the applications, and put all sorts of hurdles up to ever getting the loans forgiven. Who knows what the next administration might play with the program?
For example, under the last administration, it was not good enough to make 120 payments for forgiveness. You also had to remain in a qualifying job until the application was approved, which could take a couple of years for a determination which was most often a denial.
The big case right now on private student loans revolves only around Tuition Answer loans from Navient and forgiveness of the loan about above the cost of attendance. The case has dragged on as Navient does not want an unfavorable ruling. However, change is coming.
The suggestion is to pursue the Borrower Defense route because these applications are getting approved with speed under the Biden administration and St. George’s was on the watch list already, and there is no penalty for trying.
Gayl, I happen to be working on a post about student loan findings and the government report has this line in it that is a good example of what I was talking about. The CFPB says, “By 2018, Congress came to understand that many consumers working in public service would never receive PSLF benefits due the complexities of higher education finance and eligibility requirements. At that time, the PSLF program had discharged loans for only 338 consumers despite receiving 65,500 applications.”
Hi Steve,
The Borrower Defense route sounds promising for Rose.
Regarding PSLF: it’s true—the program is not 100% guaranteed. However, statistics are based on all applicants since the program’s inception. There were many flaws and loopholes in the criteria. Many applicants didn’t fully understand how the program worked and didn’t dot all their i’s or cross all their t’s—they didn’t have their employment verified by their employer, have their loans in a repayment plan that was eligible, etc. According to June 2022 data from the Department of Education, 9.77% of all applications (since the program’s inception) have been approved. The PSLF success rate for applications will (hopefully) exponentially increase over the next few years; the success rate is expected to hit over 50% by 2024. President Biden issued a waiver that makes many types of loans and repayment plans qualify that weren’t previously eligible. Sadly, that waiver is currently set to expire October 31, 2022, but hopefully it will be extended (indefinitely). Here’s an article from July 21, 2022 on the SBPC (Student Borrower Protection Center) website that talks about it: https://protectborrowers.org/the-pslf-waiver-has-been-a-huge-success-and-it-may-be-just-hitting-its-stride-why-end-it/
Hopefully, future administrations will continue to champion this program. 🙂
The CFPB report out today unloads a bunch of new concerns. Let’s hope they can all be fixed. See https://getoutofdebt.org/171062/cfpb-vomits-on-student-loan-programs-both-private-and-federal
Asked question about St. George’s Medical School debt.
I just answered your question.
The FTC took action against Saint James, and maybe Saint George’s is also in the crosshairs. See https://getoutofdebt.org/171263/caribbean-medical-school-refunds-misled-students