Washington, DC ––Congressman Mike Turner (OH-10) recently introduced the Student Loan Refinancing Act (HR 5084) alongside Rep. Anthony Brown (MD-4). This bipartisan legislation amends the Higher Education Act of 1965 to allow eligible federal borrowers to refinance their federal loans when interest rates are reduced. Post-introduction, Rep. Turner and Rep. Brown made the following statements:
“All federal student loan borrowers should be able to take advantage of the record-low interest rates set for this academic year. This legislation would reform our government’s student loan framework by allowing borrowers to refinance their loans to a given year’s interest rates while keeping their loans public,” said Rep Turner. “By keeping loans within the federal system, borrowers have access to the advantages of the public loans, such as the Public Student Loan Forgiveness (PSLF) Program and pandemic-related loan holidays. With the student debt crisis worsening, I am proud to offer a reliable option for borrowers to reduce their debt.”
“We need to be doing everything we can to alleviate the incredible burden of student loan debt in our country. Allowing borrowers to refinance their loans whenever interest rates are reduced isn’t just common sense but will give Americans more flexibility with their personal finances, particularly when money is tight,” said Rep. Brown. “As we work toward economic recovery following the COVID-19 pandemic helping working families make ends meet must be our priority.”
Specifically, this legislation:
- Creates a pathway for federal student loan borrowers to refinance their loans at a lower interest rate and reduce their debt, allowing graduates to free up income to stimulate the economy.
- Provides flexibility for borrowers to refinance loans when treasury-issued interest rates are low.
- Allows the ability to refinance loans for any degree, including graduate and professional programs to reduce the debt of even more graduates
- Ensures that refinancing loans does not reset a borrower’s monthly payment count on Income-Driven Repayment plans and PSLF plans.