New Report Shows Graduates Could Save $4,000 By Refinancing Student Loans
WASHINGTON—Details on the amount of money that student loan borrowers would save under the new legislation introduced yesterday by Rep. John Tierney (D-MA) and Rep. George Miller (D-CA), the senior Democrat on the House Committee on Education and the Workforce, are being released today in a report from the Congressional Research Service (CRS).
The Bank on Students Emergency Refinancing Act would allow borrowers to refinance federal and private student loans to the lower rates that are currently available to new borrowers—potentially saving graduates and their parents thousands of dollars. A companion bill was introduced yesterday in the U.S. Senate by Senator Elizabeth Warren.
The CRS report lays out how much a borrower is paying now in three specific cases, and how much they stand to save monthly and over the life of their loan under the bill.
“Providing students, parents and families the opportunity to responsibly refinance their loans will help save them money over the life of the loan—and these savings can be anticipated to be invested back into the economy,” said Tierney. “It is imperative that Congress take up our legislation that will help student borrowers and spur economic growth.”
“Allowing graduates and their families to refinance their student loans to the current market-driven rates will cut back their monthly payments and save them thousands of dollars over the life of the loan,” said Miller. “These savings will allow young people across our country to build careers, start families, and contribute to our economy without being held underwater by loan payments based on outdated interest rates. Congress should invest in our nation’s hard-working graduates by immediately passing our legislation to allow borrowers to refinance their student loans.”
Read the full CRS report here.
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