WASHINGTON, D.C. — Those who owe thousands of dollars in federal school loans could get some relief if new legislation is passed in Congress.
Rep. Mike Turner (Oh-10), along with three other representatives introduced the Student Loan Refinancing Act on Wednesday. Those co-sponsoring the legislation is Rep. Donald Norcross of New Jersey, Rep. Brian Fitzpatrick of Pennsylvania, and Rep. Lloyd Doggett of Texas.
>> Headed to college? For many, student loan debt remains the only option
This bipartisan legislation, if passed, would amend the Higher Education Act of 1965. It would allow federal student loan holders the option to refinance their loans federal school loans while remaining public borrowers.
Turner said that there are no current means for those who have federal school loans to refinance and remain public load holders. The Student Loan Refinancing Act would ensure that refinanced loans do not reset a borrower’s monthly payment and are only available to those who have federal student loans.
The legislation would also cap the number of times those with federal school loans can refinance in a given period of time.
>> It’s almost time to resume student loan payments. Not doing so could cost you
“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,” said Congressman Mike Turner. “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.”
There are nearly 43 million people who have federal student loan debt which averages to one is six Americans.