During a speech on the Senate floor, Klobuchar urged her colleagues to support new legislation that would allow people with outstanding student loan debt to refinance at lower interest rates that are currently available to new borrowers
WASHINGTON, D.C. – U.S. Senator Amy Klobuchar (D-MN) today announced her support for legislation that will help ensure students have the chance to get at an affordable education. During a speech on the Senate floor, Klobuchar urged her colleagues to support new legislation introduced by U.S. Senator Elizabeth Warren (D-MA) that would allow people with outstanding student loan debt to refinance at lower interest rates that are currently available to new borrowers.
“Student debt hangs like an anchor around not just our students, but our entire economy,” Klobuchar said. “At a time when more and more jobs require some form of higher education, we simply cannot allow soaring costs to be a barrier to opportunity. By letting students refinance their loans at lower interest rates, this common sense legislation will put more money back in students’ pockets and help ease the crushing burden of debt students are facing in Minnesota and across the country.”
The Bank on Students Emergency Loan Refinancing Act would allow all eligible Federal Family Education Loan (FFEL) Program and Direct student loan borrowers to refinance their high-interest loans down to 3.86 percent – the rate that is offered to new federal borrowers because of the Bipartisan Student Loan Certainty Act which was signed into law last summer. Under this bill, graduates and PLUS borrowers would also pay their loans under the 2013 rates at 5.4 and 6.4 percent respectively. The bill also allows people who are in good standing to refinance their high-interest private student loans down to the rates offered to new federal student loan borrowers this year. Those who refinance would also have access to the benefits and protections of the federal student loan program.
Broadcast-quality video of Klobuchar’s remarks is available here.