Washington, DC – U.S. Senators Richard Blumenthal and Chris Murphy, both D-Connecticut, along with others have introduced legislation Tuesday that would allow individuals with outstanding student loan debt to refinance at lower interest rates.
The bill, which has 19 additional co-sponsors, would allow borrowers interest rates of nearly 7 percent or higher to reduce loan rates to the 3.86 percent many new borrowers are paying under the Bipartisan Student Loan Certainty Act passed by Congress last summer.
The Bank on Students Emergency Loan Refinancing Act could lower interest rates for millions of borrowers. There are nearly 40 million Americans with outstanding student loans. The average student loan debt among those who borrow to get a bachelor’s degree is nearly $30,000.
The legislation is said to be fully-funded by enacting the Buffett Rule, which would limit special tax breaks for the wealthiest Americans that allow millionaires and billionaires to pay lower effective tax rates than middle class families. A companion bill is being introduced today in the House.