New York State has for a third time renewed an order to halt the collection of medical and student debt owed to the state for an additional 30-day period. The debt has been “specifically referred” to the Office of the Attorney General (OAG) for collection, per a June 16 news release. In response to “continuing […]
New York State has for a third time renewed an order to halt the collection of medical and student debt owed to the state for an additional 30-day period.
The debt has been “specifically referred” to the Office of the Attorney General (OAG) for collection, per a June 16 news release.
In response to “continuing financial impairments” resulting from the spread of COVID-19, the OAG again renewed the orders for a period between June 17 through July 16. After this 30-day period, the OAG will reassess the needs of state residents for another possible extension.
Additionally, the OAG will accept applications for suspension of all other types of debt owed to New York State and referred to the OAG for collection.
“While the number of coronavirus cases across New York may be on the decline, and the number of businesses opening back up may be on the rise, New Yorkers are still very much feeling the economic impact of this public health crisis each and every day,” New York Attorney General Letitia James said. “More than 2.6 million New Yorkers filed for unemployment in the last three months, so we will continue to look for ways to protect each of these individuals’ wallets, and the wallets of millions more across our state. We hope that by, once again, suspending the collection of state student and medical debt referred to my office, we are doing what we can to support New Yorkers and reduce their burden in these difficult times.”
The OAG collects certain debts owed to New York State via settlements and lawsuits brought on behalf of New York and state agencies. A total of more than 165,000 matters currently fit the criteria for a suspension of state debt collection, including patients that owe medical debt due to the five state hospitals and the five state veterans’ homes; students that owe student debt from attending SUNY campuses; and individual debtors, sole-proprietors, small-business owners, and certain homeowners that 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.
The temporary policy has also automatically suspended the accrual of interest and the collection of fees on all outstanding state medical and student debt referred to the OAG for collection, so New Yorkers are “not penalized for taking advantage of this program.”
New Yorkers with non-medical or non-student debt owed to New York State and referred to the OAG may also apply to temporarily halt the collection of state debt. Individuals seeking to apply for this temporary relief can complete an application online or visit the OAG’s coronavirus website to learn more about the suspension of payments. They can also call the OAG hotline at (800) 771-7755 for more information.