Section 1 Short title
This Act may be cited as the “Resident Education Deferred Interest Act” or the “REDI Act”.
Resident Education Deferred Interest Act
A BILL
To amend the Higher Education Act of 1965 to provide for interest-free deferment on student loans for borrowers serving in a medical or dental internship or residency program.
Sec. 2 Deferment during a medical or dental internship or residency program
Section 455(f) of the Higher Education Act of 1965 (20 U.S.C. 1087e(f)) is amended—
in paragraph (1), in the matter preceding subparagraph (A), by striking “A borrower” and inserting “Except as provided in paragraph (6), a borrower”;
in paragraph (2)(A)—
in clause (i), by striking “or” after the semicolon;
by striking the matter following clause (ii);
in clause (ii), by striking the comma at the end and inserting “; or”; and
by adding at the end the following:
“(iii) is serving in a medical or dental internship or residency program;”
by adding at the end the following:
“(6) Special rule for certain in school deferment—Notwithstanding any other provision of this Act, a borrower described in paragraph (2)(A)(iii) shall be eligible for a deferment, during which periodic installments of principal need not be paid and interest shall not accrue on any loan made to the borrower under this part.”