Four lawmakers have reintroduced legislation that would enable federal student loan holders to refinance their loans while still remaining public borrowers.
U.S. Reps. Mike Turner (R-OH), Donald Norcross (D-NJ), Brian Fitzpatrick (R-PA) and Lloyd Doggett (D-TX) recently detailed
the Student Loan Refinancing Act, which amends the Higher Education Act of 1965 (H.R. 4139).
“The student debt crisis in this country continues to worsen, and it is time for Congress to provide common-sense, reliable solutions to this problem,” Turner said. “Individuals should be able to keep their loans within the federal system while also taking advantage of lowered federal interest rates. This bipartisan legislation provides flexibility for borrowers by creating a mechanism to refinance their public student loans to a given year’s interest rates, thus easing the burden of student loans on federal borrowers.”
Legislation proponents noted presently there are no means through which federal student loan borrowers can refinance and remain public loan holders. The bill caps the number of times a borrower can refinance in a given time period.
“Everyone should have access to an affordable education that does not leave them with crushing debt,” Norcross said. “I’m proud to join my colleagues in introducing this bipartisan bill that allows borrowers to take advantage of low-interest rates in the federal system. Reducing the burden of student loan debt will help South Jersey families, grow the middle class, and make college more accessible for everyone.”