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H.R. 2028: Resident Education Deferred Interest Act

The bill, known as the Resident Education Deferred Interest Act or the REDI Act, aims to amend the Higher Education Act of 1965 to provide specific financial relief for medical and dental interns or residents who have student loans. Here’s a breakdown of what this bill would entail:

Interest-Free Deferment

The primary feature of the bill is intended to allow borrowers who are serving in medical or dental internship or residency programs to defer their student loan payments without accruing interest. This means that during the period when they are in their internships or residencies, these individuals will not have to make regular payments toward their student loans, and importantly, they will not be charged interest on these loans during this deferment period.

Changes to Existing Regulations

The bill modifies existing regulations related to loan deferment by adding a new qualification. The text indicates that:

It clarifies that individuals serving in a medical or dental internship or residency program will qualify for this special deferment.
It ensures that the deferment applies regardless of other provisions that typically govern borrower eligibility.

Impacts on Borrowers

This legislation aims to alleviate the financial burden on new medical and dental professionals who often incur significant student debt. With the added financial stress of residency programs, the ability to temporarily halt payments and eliminate interest can provide important relief and support for these early-career individuals.

Implementation and Scope

The bill directs changes to be implemented within the existing framework of the Higher Education Act, focusing specifically on the deferment provisions that apply to individuals who are pursuing careers in medical and dental fields.

Target Audience

This legislation specifically targets medical and dental graduates who have taken out student loans and are starting their first post-graduate positions as interns or residents. The intention is to support these individuals as they begin their careers in the healthcare field, often with limited financial resources upon entering these demanding roles.