State to halt collecting of medical, student debt

New York state will stop collecting student and medical debt for at least 30 days to reduce financial hardship created due to the coronavirus pandemic, officials announced Tuesday. 

The state will halt debt collection immediately and reassess a possible extension by April 15, Gov. Andrew Cuomo and Attorney General Letitia James said. The Office of the Attorney General will also accept applications for suspension of all other types of debt owed to the state. 

“In this time of crisis, my office will not add undue stress or saddle New Yorkers with unnecessary financial burden,” James said. 

The novel coronavirus causes COVID-19, a respiratory disease that has spread to at least 143 countries, infected at least 179,057 people and killed over 7,057. There are currently 1,374 confirmed cases of the virus in New York state, and 12 people have died. Onondaga County confirmed its first two cases Monday.

Cuomo on Monday ordered gyms, movie theaters and casinos to close indefinitely to help curb the spread of the virus. Restaurants and bars will be limited to takeout and delivery services. Syracuse University also announced Monday that it will transition to online classes for the remainder of the semester. 

The temporary policy will automatically halt the buildup of interest and the collection of fees on all outstanding state medical and student debt so New Yorkers are not penalized for taking advantage of the program, officials 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,” Cuomo said. 

Laid-off workers seeking unemployment benefits filled New York’s Labor Department on Monday after Cuomo waived the usual seven-day waiting period for applications. A department spokeswoman told The New York Times that the agency had received 8,758 calls by noon Monday, more than triple what it got a week prior. 

“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,” James said.