Bill Overview
Title: REDI Act
Description: This bill allows borrowers in medical or dental internships or residency programs to defer student loan payments until the completion of their programs.
Sponsors: Sen. Rosen, Jacky [D-NV]
Target Audience
Population: People in medical or dental internships or residency programs
Estimated Size: 160000
- The REDI Act specifically targets borrowers who are in medical or dental internships or residency programs.
- These are individuals who have completed dental or medical school and are now in their residency training phase.
- Residency programs typically last between 3 to 7 years, depending on the specialty chosen.
- According to the AAMC, there are over 150,000 residents and fellows in Accreditation Council for Graduate Medical Education (ACGME) programs in the United States alone.
- Dentistry programs also have a significant, though smaller, number of residents, given that dental residencies are less common but still necessary for certain specialties.
Reasoning
- The target population for this policy includes medical and dental residents, who are typically burdened with substantial student loan debt and have limited income during their internships or residencies.
- Due to the specialization and duration of residency programs, financial relief during this period can significantly impact their short-term and long-term wellbeing.
- Considering the budget constraints, the policy may not cover all residents, but focusing on those with the highest debt or lowest stipend could maximize the positive impact.
- Within the budget, approximately 20,000 individuals could benefit directly based on average loan amounts and interest accruals during residency.
Simulated Interviews
Medical Resident (New York, NY)
Age: 28 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 18/20
Statement of Opinion:
- This policy could greatly ease my financial stress.
- Right now, I'm struggling to manage loan payments with my residency stipend.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Dental Resident (Los Angeles, CA)
Age: 30 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 12/20
Statement of Opinion:
- Deferring loan interest would allow me to invest more in my training.
- I'm glad there's acknowledgment of the financial pressure residents face.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 5 |
Medical Resident (Chicago, IL)
Age: 26 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 4.0 years
Commonness: 15/20
Statement of Opinion:
- The REDI Act would prevent my student loans from growing, which is a relief.
- I'm currently unable to make any payments without this policy.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 7 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 7 | 5 |
Medical Resident (Houston, TX)
Age: 31 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 1.0 years
Commonness: 15/20
Statement of Opinion:
- This policy looks promising, but I'm nearing the end of my residency.
- It might not have a huge impact now, but it could have helped earlier.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 6 |
Dental Resident (Boston, MA)
Age: 29 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- The prospect of not accruing more interest is a huge relief.
- It would allow me to focus more on my training and less on financial worries.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 6 | 4 |
Fellowship Trainee (San Francisco, CA)
Age: 34 | Gender: other
Wellbeing Before Policy: 5
Duration of Impact: 2.0 years
Commonness: 10/20
Statement of Opinion:
- The REDI Act could reduce financial stress significantly, even during fellowship training.
- It aligns with the need to support ongoing education phases.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Medical Resident (Miami, FL)
Age: 27 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 18/20
Statement of Opinion:
- Deferring interest growth is crucial. It could lessen my financial burden.
- The policy would allow me to concentrate on my education without extra financial pressure.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 9 | 6 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Medical Resident (Seattle, WA)
Age: 32 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 3.0 years
Commonness: 20/20
Statement of Opinion:
- The deferred interest would improve my financial stability during residency.
- I'm very proactive about managing finances, so this is very positive.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 6 |
Dental Resident (Denver, CO)
Age: 33 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 2.0 years
Commonness: 12/20
Statement of Opinion:
- I'd prefer to see lower tuition rates, but this is a good temporary relief.
- The deferred interest policy would provide immediate help in residency.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 5 | 5 |
Expired license Medical Resident (Atlanta, GA)
Age: 35 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- I'm not sure if the policy applies to my situation, but similar measures during my residency would have been beneficial.
- This approach supports career advancements.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 4 |
| Year 2 | 4 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 4 |
Cost Estimates
Year 1: $800000000 (Low: $600000000, High: $1000000000)
Year 2: $800000000 (Low: $600000000, High: $1000000000)
Year 3: $800000000 (Low: $600000000, High: $1000000000)
Year 5: $800000000 (Low: $600000000, High: $1000000000)
Year 10: $400000000 (Low: $300000000, High: $500000000)
Year 100: $0 (Low: $0, High: $0)
Key Considerations
- Deferred payments may lead to increased financial well-being for residents, allowing them to allocate resources towards living costs or professional development without financial distress.
- Temporary removal of expected interest payments might cause some shift in student loan market dynamics, possibly influencing financial institution behavior towards education loans.
- The broader economic environment and changes in interest rates should be monitored, as these can impact government costs and the deferred payment benefits experienced by residents.