U.S. Rep. Mike Turner (R-OH) recently sponsored a bipartisan bill that would provide for the refinancing of certain federal student loans.
“All federal student loan borrowers should be able to take advantage of the record-low interest rates set for this academic year,” Rep. Turner said on Sept. 3. “With the student debt crisis worsening, I am proud to offer a reliable option for borrowers to reduce their debt.”
The Student Loan Refinancing Act, H.R. 5084, which Rep. Turner introduced on Aug. 23 with original cosponsor U.S. Rep. Anthony Brown (D-MD), would allow eligible federal borrowers to refinance their federal loans when interest rates are reduced, according to a bill summary provided by Rep. Turner’s office.
“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.”
If enacted, H.R. 5084 also would provide flexibility for borrowers to refinance loans when U.S. Treasury-issued interest rates are low; allow loans to be refinanced for any degree, including graduate and professional programs; and ensure that refinancing does not reset a borrower’s monthly payment count on Income-Driven Repayment plans and PSLF plans, the bill summary says.
H.R. 5084 has been referred for consideration to the U.S. House Education and Labor Committee.