Congressional Democrats on Tuesday announced legislation to allow existing student loan borrowers to refinance their debt at lower interest rates.
Senator Elizabeth Warren of Massachusetts and 22 of her Democratic colleagues introduced a bill that would let borrowers who took out both federal and private loans before 2013 to refinance that debt at the current interest rate on federal student loans. "Exploding student debt is crushing young people and dragging down our economy," Warren said in a statement. "Allowing students to refinance their loans would put money back in the pockets of people who invested in their education."
Representatives George Miller of California and John Tierney of Massachusetts plan to introduce identical legislation in the House. The refinancing program would be paid for under the Democrats' proposal by enacting the so-called "Buffett Rule," which would end some tax breaks for millionaires. That's likely to face stiff opposition among Republicans.
Read more at Inside Higher Ed: http://www.insidehighered.com/quicktakes/2014/05/07/democrats-propose-student-loan-relief-bill#sthash.1rTFZF3z.5FrrHHlp.dpbs