New York state halts debt collection for
student loans and medical payments
TIMESLEDGER | QNS.18 COM | MARCH 20-MARCH 26, 2020
financial impact of the
outbreak on individuals,
families, communities
and businesses in New
York state, as we continue
to do everything we
can to slow the spread of
the virus.”
Currently, the attorney
general’s office identifies
more than “165,000
matters” that fit the criteria
for a suspension of
state debt. These cases
include, but are not limited
to, the following:
Those who owe medical
debt to the five state
hospitals and five state
veterans’ homes;
Students who owe
debts to State University
of New York campuses;
Individual debtors,
sole proprietors, small
business owners and
certain homeowners
who owe debt relating
to oil spill cleanup and
removal costs, property
damage and breach of
contract, as well as other
fees owed to state agencies.
In addition to suspending
debt payments,
the temporary policy
will also automatically
suspend interest accrual
and collection of fees
on all outstanding state
medical and student debt
on individuals referred
to the office of the attorney
general (OAG).
“In this time of crisis,
my office will not add undue
stress or saddle New
Yorkers with unnecessary
financial burden,”
said James, “New Yorkers
need to focus on keeping
themselves safe and
healthy from the coronavirus,
and therefore can
rest assured that state
medical and student debt
referred to my office will
not be collected against
them for at least 30 days.
This is the time when
New Yorkers need to rally
around each other and
pick each other up, which
is why I am committed
to doing everything in
my power to support our
state’s residents.”
The state also encourages
those with non-medical
or non-student debt
who have been referred
to the OAG to apply to
temporarily halt the
collection of state debt.
Those who are interested
can fill out an online
application or visit the
OAG’s coronavirus website
to learn more.
Individuals unable to
fill out an online application
can call the OAG
hotline at 800-771-7755 to
learn more.
Reach reporter Jenna
Bagcal by e-mail at jbagcal@
qns.com or by phone
at (718) 260-2583.
BY JENNA BAGCAL
The state announced
that it would temporarily
halt debt collections
on individuals who owe
payments on student
loans and medical bills
to New York state, in an
effort to aid the financial
hardships as a result
of the coronavirus pandemic.
According to Governor
Andrew Cuomo and
Attorney General Letitia
James, the suspension
on payments would be
“effective immediately”
for “at least a 30-day period”
from March 16 to
April 15. Following that
period, the state will reassess
the needs of residents
and issue possible
extensions.
“As the financial impact
of this emerging
crisis grows, we are doing
everything we can to
support the thousands of
New Yorkers that are suffering
due to disruptions
caused by the COVID-
19 pandemic,” Cuomo
said. “This new action
to temporarily suspend
the collection of debt
owed to the state will
help mitigate the adverse
Photo via Flickr/Governor Andrew Cuomo
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