Student Loan Relief Act of 2015 would give borrowers refinancing options for federal student loans
U.S. Senators Shelley Moore Capito (R-W.Va.) and Kelly Ayotte (R-N.H.) announced that they have introduced the Student Loan Relief Act of 2015, which would allow borrowers to refinance their federal student loans into the private market and take advantage of lower interest rates. According to the Institute for College Access & Success, New Hampshire has the highest average student loan debt in the nation at $32,795 and West Virginia averages $27,320. In 2013, 76 percent of Granite State seniors and 70 percent of West Virginians graduated with student loan debt.
“Far too many young Americans are being held back by the student loan debt they received along with their diplomas. This is especially true in West Virginia, which has the country’s third highest default rate for federal student loans,” said Senator Capito. “Student loan borrowers should have the same opportunity as individuals with car, home or small business loans to refinance and take advantage of low interest rates. The Student Loan Relief Act of 2015 will level the playing field for borrowers, boost the economy and help qualified individuals repay their loans.”
“New Hampshire has the highest average student loan debt in the nation, and as someone who worked hard to pay off my student loans, I understand the challenges students and families are facing when it comes to college costs,” said Senator Ayotte. “Our legislation would give borrowers flexibility, allowing them to save money by refinancing their student loans the way they would refinance a mortgage. And to better support our younger generation of workers, this bill would allow employers to help qualified employees pay off their student loan debt with pre-tax dollars.”
Currently, federal student loan borrowers are subjected to a fixed interest rate with little ability to refinance. The Student Loan Relief Act of 2015 gives the Department of Education the authority to facilitate refinancing federal student loans into the private market, giving borrowers access to lower interest rates. At no cost to taxpayers, the federal government will also provide a loan guarantee for refinanced loans. In addition, this legislation creates a new tool to allow employers to help qualified employees repay student loans with pre-tax dollars.
