Fitzpatrick cosponsors bipartisan bill to allow refinancing of student loans

U.S. Rep. Brian Fitzpatrick (R-PA) has reintroduced bipartisan legislation that would authorize the refinancing and recalculation of certain federal student loans.

“We need to revolutionize American education and job training so we’re preparing students for a 21st century job market,” Rep. Fitzpatrick said. “That means, among other things, reducing barriers to educational opportunities and post-graduation success.” 

Rep. Fitzpatrick is the lead original cosponsor of the Student Loan Refinancing and Recalculation Act, H.R. 1899, sponsored on March 27 by U.S. Rep. John Garamendi (D-CA). Among the 26 members joining Rep. Fitzpatrick as a cosponsor of the bill is U.S. Rep. John Katko (R-NY).

If enacted, H.R. 1899 would permit students to refinance their student loan interest rates. The bill also would decrease future student loan interest rates, eliminate origination fees on student loans, delay interest rate accruals for low-income and middle-class borrowers while they are students, and allow borrowers working in medical or dental residencies to defer their payments until they complete their programs, according to a summary of the bill provided by Rep. Fitzpatrick.

“For too many, student loan debt is a crippling burden that impacts their involvement in our economy and achieving personal goals like owning a home, starting a family and supporting their community,” said Rep. Fitzpatrick. “This bipartisan legislation is a step toward addressing this crisis.”

For example, orthodontists in America currently graduate owing an average of over $428,000 in student loans, according to Dr. Brent Larson, the outgoing president of the American Association of Orthodontists. 

“Reducing interest rates and fees and allowing refinancing for today’s graduates are critical steps to helping them repay these loans sooner and more efficiently so they can begin to invest in their futures and careers,” Larson said in supporting H.R. 1899.

The bill has been referred for consideration to the U.S. House Education and Labor Committee.