H.R. 2028 — REDI Act

This section expands in-school deferment eligibility under the William D. Ford Federal Direct Loan Program (Direct Loans) to borrowers serving in a medical or dental internship or residency program by (1) excepting such borrowers from the general in-school deferment rule; (2) adding them to the list of qualifying borrowers; and (3) establishing a special rule under which no principal payments are required and interest does not accrue on Direct Loans during the deferment. (Thus, medical and dental residents—who typically have high Direct Loan debt from professional degree programs but limited income during 3-7 year residencies—receive an interest-free payment pause comparable to traditional in-school deferment for subsidized undergraduate loans.)