Easing Student Loan Burden on Medical Residents – REDI Act

Our Position

The Academy remains concerned about the amount of debt medical students and residents accrue during their training and how these students’ career decisions may be influenced by the total accumulation of debt, rather than their interests. Therefore, the AAO-HNS supports the Resident Education Deferred Interest (REDI) Act (H.R. 2028/S. 942). This bill would help reform a major financial barrier for future physicians to provide young physicians more autonomy with their career choices.

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Background

The cost of graduate-level medical education is substantial for the vast majority of students. Further, those who spend years in residency with very low pay often cannot begin to repay their student loans after graduation. While they may qualify to have their payments halted during residency through deferment or forbearance processes, interest continues to accrue on their loans and is added to their balance.

Providing student loan relief also is a workforce issue. According to Health Resources Services Administration’s (HRSA) latest report from 2024, nationally, across all physician specialties in the United States, there is a projected shortage of 187,130 full-time equivalent (FTE) physicians in 2037. In fact, 31 out of the 35 physician specialties reported in an HRSA brief are projected to have shortages in 2035.[1]

Congress can Improve Medical and Dental Student Financial Security, Autonomy, and Workforce Shortages

Recognizing this need to act, Congress introduced The Resident Education Deferred Interest (REDI) Act (S. 942/H.R. 2028). The REDI Act is a bipartisan effort that addresses a critical financial challenge for medical and dental residents. This proposed legislation, introduced on March 11 by U.S. Senators Jacky Rosen (D-NV) and John Boozman (R-AR), alongside U.S. Representatives Brian Babin (R-TX) and Chrissy Houlahan (D-PA), aims to eliminate the accrual of interest on student loans for borrowers during their medical or dental internship or residency programs. The REDI Act does not provide any loan forgiveness or reduce a borrower’s original loan balance, but rather allows medical and dental residents to save thousands of dollars in loan interest, making it more feasible for them to consider opening practices in underserved areas or pursuing careers in academia or research.

Resources

119th Congress

 

[1] Department of Health and Human Services, Health Resources and Services Administration, Physician Workforce: Projections, 2022-2037. November 2024. Available at https://bhw.hrsa.gov/sites/default/files/bureau-health-workforce/data-research/physicians-projections-factsheet.pdf.

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