With nearly 43 million people holding federal student loan debt, U.S. Reps. Mike Turner (R-OH) and Brian Fitzpatrick (R-PA) on June 14 offered a bipartisan bill that would amend the Higher Education Act of 1965 to provide for the refinancing of certain federal student loans.
“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,” Rep. Turner said.
The congressman sponsored the Student Loan Refinancing Act, H.R. 4139, with three original cosponsors, including Rep. Fitzpatrick and U.S. Rep. Donald Norcross (D-NJ).
Currently, federal student loan borrowers have no way to refinance their loans and also remain public loan holders because the only existing refinancing option requires conversion to private loans, according to a bill summary provided by the lawmakers.
“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 Rep. Turner. “Individuals should be able to keep their loans within the federal system while also taking advantage of lowered federal interest rates. ”
If enacted, H.R. 4139 would ensure that refinancing loans does not reset a borrower’s monthly payment count and is only available to federal student loan holders, the summary says, and would cap the number of times a borrower could refinance in a given time period.
“Our nation’s student loan crisis is unsustainable and should not be a partisan issue in Congress,” Rep. Fitzpatrick said. “The common-sense, 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.”
H.R. 4139 has been referred for consideration to the U.S. House Education and the Workforce Committee.
“Everyone should have access to an affordable education that does not leave them with crushing debt,” said Rep. Norcross. “Reducing the burden of student loan debt will help South Jersey families, grow the middle class, and make college more accessible for everyone.”