Sen. Warren Proposes Allowing Student-Loan Borrowers to Refinance Debt - Government - the Chronicle of Higher Education
U.S. Sen. Elizabeth Warren announced on Saturday that she will introduce legislation that would allow existing student-loan borrowers to refinance their debt at interest rates offered to new borrowers in the federal student-loan program.
The announcement of the forthcoming legislation, which she said will be released “in the coming weeks,” came during Ms. Warren’s keynote address at a research symposium on student loans sponsored by Suffolk University’s Law School and the National Consumer Law Center.
“A graduate student who took out an unsubsidized loan before July 1 of last year is locked into an interest rate of nearly 7 percent,” said Ms. Warren, a Democrat of Massachusetts. “Refinancing those old loans would lower the interest rate to 3.86 percent for undergraduate loans, and lower the others accordingly.”