What This Bill Does
This bill changes federal student loan rules to help doctors and dentists in training. It allows people serving in medical or dental internship or residency programs to pause their student loan payments without interest building up during that time.
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Who It Affects
People borrowing federal student loans who are serving in medical or dental internship or residency programs.
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Key Provisions
• Borrowers serving in a medical or dental internship or residency program can get a deferment (a pause on making payments) where they do not have to pay principal (the original amount borrowed) and no interest accrues (builds up) on their loans (Sec. 2).
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What Changes
The bill adds a new deferment option to the Higher Education Act of 1965. Currently, the law does not list medical or dental internship or residency service as a reason for interest-free deferment. After this bill passes, borrowers in those programs would qualify for a pause on payments where interest does not accumulate.
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Important Definitions
• Deferment: A period when a borrower can pause making loan payments.
• Interest accrues: Interest money builds up and adds to what the borrower owes.
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I
118TH CONGRESS
1ST SESSION H. R. 1202
To amend the Higher Education Act of 1965 to provide for interest-free
deferment on student loans for borrowers serving in a medical or dental
internship or residency program.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 27, 2023
Mr. BABIN (for himself and Ms. HOULAHAN) introduced the following bill;
which was referred to the Committee on Education and the Workforce
A BILL
To amend the Higher Education Act of 1965 to provide
for interest-free deferment on student loans for bor-
rowers serving in a medical or dental internship or resi-
dency program.
Be it enacted by the Senate and House of Representa-
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tives of the United States of America in Congress assembled,
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SECTION 1. SHORT TITLE.
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This Act may be cited as the ‘‘Resident Education
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Deferred Interest Act’’ or the ‘‘REDI Act’’.
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•HR 1202 IH
SEC. 2. DEFERMENT DURING A MEDICAL OR DENTAL IN-
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TERNSHIP OR RESIDENCY PROGRAM.
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Section 455(f) of the Higher Education Act of 1965
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(20 U.S.C. 1087e(f)) is amended—
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(1) in paragraph (1), in the matter preceding
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subparagraph (A), by striking ‘‘A borrower’’ and in-
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serting ‘‘Except as provided in paragraph (6), a bor-
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rower’’;
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(2) in paragraph (2)(A)—
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(A) in clause (i), by striking ‘‘or’’ after the
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semicolon;
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(B) by striking the matter following clause
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(ii);
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(C) in clause (ii), by striking the comma at
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the end and inserting ‘‘; or’’; and
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(D) by adding at the end the following:
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‘‘(iii) is serving in a medical or dental
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internship or residency program;’’; and
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(3) by adding at the end the following:
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‘‘(6) SPECIAL RULE FOR CERTAIN IN SCHOOL
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DEFERMENT.—Notwithstanding any other provision
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of this Act, a borrower described in paragraph
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(2)(A)(iii) shall be eligible for a deferment, during
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which periodic installments of principal need not be
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•HR 1202 IH
paid and interest shall not accrue on any loan made
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to the borrower under this part.’’.
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Æ
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