REDI Act
- Bill Number
- H.R. 2028
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Education
- Status
- Introduced
- Latest Action
- 2025-03-11: Referred to the House Committee on Education and Workforce.
- Last Updated
- 2026-07-10T08:06:41Z
AI-Generated Summary
Purpose
The Resident Education Deferred Interest Act (REDI Act), H.R. 2028, aims to ease the financial burden on medical and dental students by allowing them to pause student loan payments without accruing interest while completing required internship or residency programs after graduation.
Key Provisions
- Deferment Eligibility: Borrowers with federal student loans under Title IV of the Higher Education Act of 1965 can defer payments if they are serving in a medical or dental internship or residency program.
- Interest-Free Period: During this deferment, no principal payments are required, and no interest accrues on the loans, unlike some other deferment options where interest may still build up.
- Scope: This applies specifically to loans made under the Direct Loan Program and integrates into existing "in-school" deferment rules, treating residency as an extension of education.
Significant Changes to Existing Law
- Amends Section 455(f) of the Higher Education Act of 1965 by adding a new clause (iii) to the in-school deferment category, explicitly including medical and dental internships or residencies.
- Introduces a special rule (paragraph 7) that overrides other provisions to ensure no interest accrual for these borrowers, which is not available under current deferment options for post-graduation training.
- Modifies the introductory language in paragraph (1) to reference the new exception, ensuring it fits seamlessly into the existing framework without disrupting other deferments.
Potential Impacts
- On Citizens: Reduces financial stress for aspiring doctors and dentists during their residencies, when they often earn low salaries (typically $50,000–$70,000 annually). This could encourage more individuals to pursue these careers, potentially addressing shortages in healthcare professionals.
- On Government Agencies: The U.S. Department of Education will need to update loan servicing systems and guidelines to track and apply this deferment, possibly increasing administrative costs but decreasing long-term defaults by making repayment more manageable.
- On International Relations: Minimal direct impact, though it could indirectly support U.S. healthcare capacity, which aids global health initiatives.
Main Stakeholders Affected
- Medical and Dental Students/Residents: Primary beneficiaries, as they gain relief from loan interest during 3–7 years of training.
- Federal Student Loan Borrowers: Broader group affected, as this expands deferment options under federal programs.
- U.S. Department of Education and Loan Servicers: Responsible for implementing and administering the changes.
- Healthcare Institutions: Hospitals and training programs may see increased enrollment due to reduced financial barriers for trainees.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens the Higher Education Act's support for graduate-level training without altering loan forgiveness programs; ensures compliance with equal protection by targeting a specific, justified group (healthcare trainees) to promote public welfare.
- Constitutional: No apparent conflicts, as it involves congressional spending authority under Article I to regulate education and debt relief.
- Political: Could appeal across party lines by supporting essential workers in healthcare, but may spark debates on federal loan subsidies versus broader debt relief efforts; as an introduced bill (March 11, 2025), it requires committee approval and passage to become law.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (128)
Rep. Houlahan, Chrissy [D-PA-6], Rep. Bacon, Don [R-NE-2], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Davids, Sharice [D-KS-3], Rep. Joyce, John [R-PA-13], Rep. Kiley, Kevin [R-CA-3], Rep. Scholten, Hillary J. [D-MI-3], Rep. DesJarlais, Scott [R-TN-4], Rep. Chu, Judy [D-CA-28], Rep. Malliotakis, Nicole [R-NY-11], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Rouzer, David [R-NC-7], Rep. Tokuda, Jill N. [D-HI-2], Rep. Sessions, Pete [R-TX-17], Rep. Pettersen, Brittany [D-CO-7], Rep. Franklin, Scott [R-FL-18], Rep. Mrvan, Frank J. [D-IN-1], Rep. Kustoff, David [R-TN-8], Rep. Soto, Darren [D-FL-9], Rep. Valadao, David G. [R-CA-22], Rep. Bonamici, Suzanne [D-OR-1], Rep. McCormick, Richard [R-GA-7], Rep. Moulton, Seth [D-MA-6], Rep. Mann, Tracey [R-KS-1], Rep. Bishop, Sanford D. [D-GA-2], Rep. Bice, Stephanie I. [R-OK-5], Rep. Fields, Cleo [D-LA-6], Rep. Rutherford, John H. [R-FL-5], Rep. Moore, Gwen [D-WI-4], Rep. Rogers, Mike D. [R-AL-3], Rep. Castor, Kathy [D-FL-14], Rep. Bergman, Jack [R-MI-1], Rep. Garbarino, Andrew R. [R-NY-2], Rep. Johnson, Julie [D-TX-32], Rep. Moolenaar, John R. [R-MI-2], Rep. Van Duyne, Beth [R-TX-24], Rep. McBride, Sarah [D-DE-At Large], Rep. Lawler, Michael [R-NY-17], Rep. Gottheimer, Josh [D-NJ-5], Rep. Baumgartner, Michael [R-WA-5], Rep. Harder, Josh [D-CA-9], Rep. Steube, W. Gregory [R-FL-17], Rep. Nadler, Jerrold [D-NY-12], Rep. Miller, Carol D. [R-WV-1], Rep. Pou, Nellie [D-NJ-9], Rep. Meuser, Daniel [R-PA-9], Rep. Doggett, Lloyd [D-TX-37], Rep. Owens, Burgess [R-UT-4], Rep. Wasserman Schultz, Debbie [D-FL-25], Rep. Simpson, Michael K. [R-ID-2] and 78 more
Recent Actions
- 2025-03-11: Referred to the House Committee on Education and Workforce.
- 2025-03-11: Introduced in House
- 2025-03-11: Introduced in House
Bill Versions
- Resident Education Deferred Interest Act — issued 2025-03-11 — PDF (3 pages)