WASHINGTON, D.C. — Congressman Mike Turner (OH-10) reintroduced the Student Loan Refinancing Act alongside Congressman Donald Norcross (NJ-01), Congressman Brian Fitzpatrick (PA-01), and Congressman Lloyd Doggett (TX-37). This bipartisan legislation would amend the Higher Education Act of 1965 by creating a pathway for federal student loan holders to refinance their loans while still remaining public borrowers.
“The student debt crisis in this country continues to worsen, and it is time for Congress to provide common-sense, reliable solutions to this problem,” said Congressman Mike Turner. “Individuals should be able to keep their loans within the federal system while also taking advantage of lowered federal interest rates. This bipartisan legislation provides flexibility for borrowers by creating a mechanism to refinance their public student loans to a given year’s interest rates, thus easing the burden of student loans on federal borrowers.”
"Everyone should have access to an affordable education that does not leave them with crushing debt,” said Congressman Donald Norcross. “I’m proud to join my colleagues in introducing this bipartisan bill that allows borrowers to take advantage of low-interest rates in the federal system. Reducing the burden of student loan debt will help South Jersey families, grow the middle class, and make college more accessible for everyone.”
“Our nation’s student loan crisis is unsustainable and should not be a partisan issue in Congress,” said Congressman Brian Fitzpatrick. “The commonsense, common-ground legislation we are introducing today would give borrowers the ability to refinance their loans at lower interest rates. I am grateful to partner with my colleagues on both sides of the aisle on the Student Loan Refinancing Act to ensure that American families and borrowers have more flexibility as they work to pay back their loans.”
“Crushing student loan debt is preventing Americans from buying homes, starting families, and even saving for retirement,” said Congressman Lloyd Doggett. “Congress must do more to deliver relief. It’s unacceptable that a borrower seeking to refinance their federal loans must convert to private loans and potentially jeopardize their income-driven repayment plans and other assistance. The Student Loan Refinancing Act ensures that borrowers are not punished for seeking the lowest interest rate possible on their federal student loans. Hopefully, this legislation will relieve some of the overbearing weight of debt.”
Background:
Currently, there are no means through which federal student loan borrowers can refinance and remain public loan holders. Even when the federal interest rates are at record lows, existing government borrowers cannot refinance to those lower rates. The only existing refinancing option requires conversion to private loans.
Nearly 43 million people – meaning one in every six adult Americans – hold federal student loan debt.
The Student Loan Refinancing Act ensures that refinancing loans does not reset a borrower’s monthly payment count and is only available to federal student loan holders. The legislation also caps the number of times a borrower can refinance in a given time period.
Read the full text of the Student Loan Refinancing Act here.