Dear Senators Rosen and Boozman:
On behalf of our organizations, we thank you for introducing the “Resident Education Deferred Interest (REDI) Act” (S 3658) that, if passed, will allow borrowers to qualify for interest-free deferment on their student loans while serving in a medical or dental internship or residency program.
As you are aware, the cost of graduate-level medical and dental education is substantial for the vast majority of students. Further, those who undertake several years of residency with very low pay are often unable to begin repaying student debt immediately. As a result, they qualify to have their payments halted during residency through deferment or forbearance processes, but they continue to accrue interest that is added to their balance.
Passage of the REDI Act is an important part of student loan repayment reform. This bill would prevent medical and dental residents from being penalized during residency and save them thousands of dollars in interest. Providing interest accrual relief during residency also would make the concepts of opening practices in underserved areas or entering faculty or research more attractive and affordable to residents.
Thank you again for your leadership on this important issue.
