Washington, D.C. – U.S. Senator Catherine Cortez Masto (D-Nev.) cosponsored legislation led by Senator Elizabeth Warren (D-Mass.) to ease students’ debt burdens by allowing eligible borrowers to refinance their federal loans. By closing tax loopholes and providing options for lower interest rates, the Bank on Students Emergency Loan Refinancing Act significantly reduces barriers for eligible students to pursue higher education and save for their futures.
“Nevada students averaged over $23,000 in student loan debt in 2015. The price of a college education should not be years, or even decades, of crippling debt. This legislation provides debt relief so students can pursue higher education, access good-paying jobs and pursue their financial and career goals. An investment in Nevada’s students is an investment in Nevada’s communities, economy and future, and we must ensure we are doing everything we can to help them thrive.”
In addition to Senators Cortez Masto and Warren, Senators Tammy Baldwin (D-Wis.), Michael F. Bennet (D-Colo.), Richard Blumenthal (D-Conn.), Cory A. Booker (D-N.J.), Sherrod Brown (D-Ohio), Benjamin L. Cardin (D-Md.), Robert P. Casey, Jr. (D-Pa.), Tammy Duckworth (D-Ill.), Richard J. Durbin (D-Ill.), Kirsten E. Gillibrand (D-N.Y.), Kamala D. Harris (D-Calif.), Margaret Wood Hassan (D-N.H.), Martin Heinrich (D-N.M.), Mazie K. Hirono (D-Hawaii), Amy Klobuchar (D-Minn.), Patrick J. Leahy (D-Vt.), Joe Manchin III (D-W.V.), Edward J. Markey (D-Mass.), Robert Menendez (D-N.J.), Jeff Merkley (D-Ore.), Christopher Murphy (D-Conn.), Gary C. Peters (D-Mich.), Jack Reed (D-R.I.), Bernard Sanders (I-Vt.), Jeanne Shaheen (D-N.H.), Debbie Stabenow (D-Mich.), Tom Udall (D-N.M.), Chris Van Hollen (D-Md.), Sheldon Whitehouse (D-R.I.), Ron Wyden (D-Ore.), Maria Cantwell (D-Wash.), Dianne Feinstein (D-Calif.) and Tina Smith (D-Minn.) also cosponsored this legislation.
BACKGROUND:
The Bank on Students Emergency Loan Refinancing Act allows student loan borrowers with high interest rates on federal or private loans to refinance them to 3.76 percent, the current interest rate for Federal Direct Stafford Loans and Federal Direct Unsubsidized Stafford Loans, compared to the 7 percent many students currently pay. All eligible federal FFELP and Direct student loan borrowers can refinance their high-interest loans down to the lower rates offered to newer federal borrowers. Those who refinance will also have access to the benefits and protections of the federal student loan program.
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