Kennedy joins Rosen, Boozman bill to address health care provider shortage by pausing interest accrual during residency
Jun 08 2023
WASHINGTON – Sen. John Kennedy (R-La.) has cosponsored the Resident Education Deferred Interest (REDI) Act. Sens. Jacky Rosen (D-Nev.) and John Boozman (R-Ark.) introduced the REDI Act to allow medical professionals serving in a medical or dental internship or residency program to defer their student loans without interest accruing while they complete those programs.
“Louisianians need more access to affordable doctors and dentists. By pausing interest accrual while health care providers finish their training, we can enable more qualified professionals to care for people who are most in need,” said Kennedy.
This bill does not erase debt or bail borrowers out. Rather, the legislation would simply defer the interest medical and dental students pay on their loans until after they have completed their residencies.
Medical residencies typically last three to 10 years. Doctors and dentists often earn modest salaries during residency, while their debt grows rapidly as interest accrues.
As a result of this debt burden, many residents pursue lucrative fields of practice over areas that are in higher demand, such as primary care.
Since this bill represents only a deferment, this bill would not add to the deficit.
The bill text is available here.