What This Bill Does
This bill changes federal student loan rules to help people in medical or dental training. It allows borrowers serving in internships or residencies to pause their loan payments without interest building up during that time.
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Who It Affects
- People with federal student loans who are in medical internship or residency programs
- People with federal student loans who are in dental internship or residency programs
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Key Provisions
- Borrowers in medical or dental internship or residency programs become eligible for a loan pause where they do not have to make monthly payments and no interest charges accumulate on their loans (Sec. 2)
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What Changes
The Higher Education Act of 1965 will be amended to add medical and dental internship or residency service as a new reason someone can pause their student loan payments. During this pause, interest will not accrue (build up over time) on loans given under this part of the law.
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Important Definitions
- Deferment: A pause in loan payments during which interest does not accumulate
- Internship or residency program: Not specified in bill text
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Effective Date
Not specified in bill text
II
118TH CONGRESS
1ST SESSION
S. 704
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 SENATE OF THE UNITED STATES
MARCH 8, 2023
Ms. ROSEN (for herself and Mr. BOOZMAN) introduced the following bill;
which was read twice and referred to the Committee on Health, Edu-
cation, Labor, and Pensions
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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•S 704 IS
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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•S 704 IS
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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