May 15, 2020

NY extends pause on collection of medical, student loan debt

NY extends pause on collection of medical, student loan debt


New York has extended collection of medical and student loan debt owed to the state for another 30 days, as Gov. Andrew Cuomo announced earlier Friday that he was extending the stay-at-home order until June 13.

State Attorney General Letitia James and Cuomo originally postponed the collection on these debts owed to the state in March amid the coronavirus shutdowns. James’ office Friday announced the second extension through June 16.

“This pandemic has taken a serious financial and emotional toll on our state, and the last thing working people need to do right now is worry about managing their debt,” James said in a statement. “We are renewing the suspension of state student and medical debt collection referred to my office for a second time to help ease the burden on New Yorkers as we hopefully will soon move towards a period of gradual recovery.”

There are over 165,000 cases and lawsuits begin handled by the AG’s office for people who owe student, medical and other debts to the state.

The people who owe money in these cases also will have an automatic suspension of the accrual of interest and fees.



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