The cost of graduate-level medical education is substantial for physicians in training. Physicians in residency receive very low compensation and are often unable to begin repaying student loan debt immediately. These residents can qualify to have their payments halted during residency through deferment or forbearance processes. However, the loans continue to accrue interest that accumulates to the overall loan balance.
To address the issue of increased student loan debt, Congressmen Brian Babin, D.D.S. (R-TX-36), Andy Harris, M.D. (R-MD-1), Bill Posey (R-FL-8), Paul Gosar, D.D.S. (R-AZ-4) and Steve Stivers (R-OH-15) introduced H.R. 1554, the “Resident Education Deferred Interest Act” (REDI Act). The bill would allow borrowers to qualify for interest-free deferment on their student loans while serving in a medical or dental internship or residency program.