H.R.2028 - Resident Education Deferred Interest Act; REDI Act (119th Congress)
Summary
H.R.2028, the Resident Education Deferred Interest Act (REDI Act), aims to amend the Higher Education Act of 1965. The bill proposes to provide interest-free deferment on student loans for borrowers serving in medical or dental internship or residency programs. This deferment would apply to the principal and interest of the loans during the specified period.
Expected Effects
The REDI Act, if enacted, would alleviate the financial burden on medical and dental residents by suspending interest accrual on their student loans during their training. This could encourage more individuals to pursue careers in medicine and dentistry, potentially addressing healthcare workforce shortages. The change would be implemented by modifying Section 455(f) of the Higher Education Act of 1965.
Potential Benefits
- Reduces the financial strain on medical and dental residents during their training.
- May incentivize more students to enter medical and dental fields.
- Could help address potential shortages in healthcare professionals.
- Simplifies loan repayment processes for residents during their training period.
- Potentially improves the overall well-being of residents, reducing stress related to debt.
Most Benefited Areas:
Potential Disadvantages
- May increase the overall cost of the student loan program to the government.
- Could create a precedent for interest-free deferments for other professions, leading to further costs.
- Might not significantly impact the overall student debt crisis.
- Potential for administrative complexities in implementing and managing the deferment program.
- Could be perceived as unfair by borrowers in other fields who do not receive similar benefits.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution, particularly the implied power of Congress to legislate on matters related to education and general welfare. Article I, Section 8 grants Congress the power to collect taxes and provide for the general welfare of the United States. Providing interest-free deferment on student loans for medical and dental residents could be argued as promoting the general welfare by supporting the healthcare workforce.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).