S.942 - Resident Education Deferred Interest Act; REDI Act (119th Congress)
Summary
S.942, the Resident Education Deferred Interest Act (REDI Act), proposes an amendment to the Higher Education Act of 1965. The amendment aims to provide interest-free deferment on student loans for borrowers serving in medical or dental internship or residency programs. The bill was introduced in the Senate by Ms. Rosen and Mr. Boozman and referred to the Committee on Health, Education, Labor, and Pensions.
Expected Effects
If enacted, the REDI Act would allow medical and dental interns and residents to defer their student loan payments without accruing interest during their training. This would reduce the financial burden on these individuals during a period when they are often earning relatively low wages while working long hours. The change would be implemented by amending Section 455(f) of the Higher Education Act of 1965.
Potential Benefits
- Reduced Financial Strain: Medical and dental residents would experience less financial pressure during their training.
- Attract Talent: The bill could incentivize more individuals to pursue careers in medicine and dentistry.
- Improved Well-being: Reduced financial stress can lead to improved mental and physical health for residents.
- Increased Affordability: Makes medical and dental education more accessible to individuals from diverse socioeconomic backgrounds.
- Focus on Training: Residents can focus more on their training and patient care rather than worrying about accruing interest on their loans.
Potential Disadvantages
- Increased Government Costs: The government would forgo interest revenue on deferred loans.
- Potential for Abuse: There might be potential for individuals to exploit the deferment program.
- Administrative Burden: Implementing and managing the deferment program could create additional administrative workload.
- Limited Scope: The bill only benefits medical and dental residents, potentially creating disparities with other professions.
- Complexity: Adding more rules to student loan programs can increase complexity and confusion.
Most Disadvantaged Areas:
Constitutional Alignment
The bill appears to align with the Constitution's general welfare clause, as it aims to improve the financial well-being of medical and dental residents, potentially leading to better healthcare outcomes. Article I, Section 8 grants Congress the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States. This bill falls under the 'general welfare' provision, as it seeks to support those in the medical field.
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).