Student loans and medical debt get 30-day reprieve due to pandemic
New York State Attorney General Letitia James. Credit: Howard Schnapp
ALBANY — New Yorkers who owe the state for nonpayment of student loans, medical bills and some other debts will get a reprieve of at least 30 days because of disruptions from the COVID-19 virus, state officials said Tuesday.
The state will temporarily suspend only the debt that is already in the collection process by the state attorney general, said Gov. Andrew M. Cuomo.
The debts include unpaid loans, patients who owe the state’s five state hospitals and five veterans homes; small business operators owing taxes; and fees owed to state agencies. The measure also suspends the accrual of interest on all medical and student debts covered by the measure.
“This is the time when New Yorkers need to rally around each other and pick each other up,” said state Attorney General Letitia James.
The action covers the collection period of March 17 through April 16. The attorney general’s office will then assess the need to extend the period.
New Yorkers facing collection on other debts to the state handled by the attorney general’s office can apply for a temporary halt order online (https://ag.ny.gov/covid-19-debt-suspension-application) or by calling 800-771-7755.
“As the financial impact of this emerging crisis grows, we are doing everything we can to support the thousands of New Yorkers who are suffering as a result of the 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 financial impact of the outbreak on individuals, families, communities and businesses in New York as we continue to do everything we can to slow the spread of the virus.”
In answer to a reporter’s question Tuesday, Cuomo said the state wasn’t in a financial position to suspend the state sales tax which is a major revenue for local governments and to state government.
Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.
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