Congressman Brendan Boyle Co-Sponsors Student Loan Refinancing Bill of 2015
WASHINGTON, D.C. – Today, Congressman Brendan Boyle (D-PA-13) co-sponsored the critically important Bank on Students Emergency Loan Refinancing Act of 2015, which is being re-introduced today by Rep. Joe Courtney (D-CT) and Senator Elizabeth Warren (D-MA).
This legislation would provide fairness and debt relief to borrowers with high interest rates on existing student loans in both the public and private markets by allowing them to refinance to lower interest rates, similar to those available to new student loan borrowers. Under the bill, undergraduate student loan borrowers could refinance to an interest rate of 3.86 percent. Currently, some student loan borrowers are stuck with interest rates as high as 8 percent on their existing loans.
“The crushing burden of student loan debt is hurting our economy and holding back an entire generation of young Americans,” said Congressman Brendan Boyle. “I personally understand the burden of student loan debt, and I am fully committed to addressing this crisis. This bill takes an important step forward by finally providing borrowers with existing student loans the same option to refinance that millions of other borrowers already have.”
“College graduates across the country are putting their dreams on hold as they struggle to pay off their student loans,” continued Congressman Boyle. “Current law prevents millions of hardworking, responsible borrowers from refinancing their student loans at today’s low rates, the way that people can refinance their home and auto loans. This legislation is simply fair.”
Congressman Boyle also announced that Philadelphia and Montgomery County borrowers in Pennsylvania would benefit by being able to refinance their student loans at lower interest rates if Congress passes the bill, according to estimates prepared by the Department of Education in June 2014. The Department of Education estimates that nationwide 25 million borrowers would benefit from the bill. Under the bill, a typical participating borrower would save $2,000 over the life of his or her loan.
Unfortunately, in the last Congress, Republicans voted to block bringing up this critically important student loan refinancing bill in the House and filibustered the bill in the Senate.
“I and other advocates for student loan borrowers will make this bill a top priority this year,” concluded Congressman Boyle. “We will work with student loan borrowers from around the country to make sure their voices are heard and that this needed bill gets enacted this year.”