Cuomo, James freeze student and medical debt owed to state

New York Attorney General Letitia James said her office will not collect student and medical debt owed to the state until at least April 15. Photo by Mary Altaffer/AP

By David Brand

Gov. Andrew Cuomo on Thursday halted state collection of student and medical debt owed to the state for at least 30 days.

The measure freezes state debt collection during the growing COVID-19 crisis, which has forced business closures across the state. Debts are typically referred to the state Office of the Attorney General, which will suspend collection until at least April 15. for collection.

“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,” Cuomo said.

The Office of the Attorney General collects certain debts owed to the state through settlements and lawsuits. More than 165,000 such matters qualify for suspension, including debt owed to SUNY schools and medical debt owed to state hospitals, according to the state.

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