At a press conference this morning at the
"Too many of today's college graduates are entering the work force with student loan debts equivalent to that of a home mortgage. Put simply, graduates are buried in debt before they earn their first paycheck," said Welch. "This mountain of debt is holding back a generation of young Americans from buying a car or home, saving for retirement, or starting a small business. It defies common sense that student loans cannot be refinanced, just like home mortgages, to take advantage of lower interest rates. Our legislation will allow graduates to do just that."
Current law prevents borrowers from refinancing student loans to take advantage of historically low interest rates. Graduates entering the work force often have a portfolio of loans with interest rates locked in at 8 percent or higher. Total student loan debt in
The Bank on Students Emergency Loan Refinancing Act (H.R. 4582) would allow borrowers to refinance their federal and private student loans at last year's market-based rates. Specifically:
* Undergraduate loans would be refinanced at a rate of 3.86 percent;
* graduate education loans would be refinanced at a rate of 5.41 percent; and
* loans taken out by parents would be refinanced at a rate of 6.41 percent.
Under the terms of the bill, a graduate who borrowed the national average of around
According to the
H.R. 4582 is the House companion legislation to S. 2432, introduced in the
Read this original document at: http://www.welch.house.gov/press-releases/welch-fights-to-allow-borrowers-to-refinance-student-loan-debt-at-lower-interest-rates/
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