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QUEENS WEEKLY, MARCH 22, 2020
New York state halts debt collection for student
loans and medical payments for ‘at least’ 30 days
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 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.
Photo via Flickr/Governor Andrew Cuomo
2020
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