H.R. 1899 would address the ballooning student loan debt crisis in America that cripples more than 40 million Americans and their families
Reps. Brian Fitzpatrick and John Garamendi, a California Democrat, reintroduced the Student Loan Refinancing and Recalculating Act, H.R. 1899, to address the ballooning student loan debt crisis in America that cripples more than 40 million Americans and their families.
The total student loan debt in America has reached $1.5 trillion, and more than $875 billion of it is held by the federal government at interest rates of up to 6.84 percent. That percentage far exceeds the market rate for most government loans.
This legislation would allow students to refinance their student loan interest rates, lower future student loan interest rates, eliminate origination fees on student loans, delay student loan interest rate accrual for low-income and middle-class borrowers while they are pursuing their education, and allow for borrowers in medical or dental residencies to defer payments until the completion of their program.
Jean Rash, chair of the Higher Education Loan Coalition, urged support for the legislation, saying, “By refinancing student loan rates for past borrowers and recalculating rates for future borrowers, this bipartisan bill would establish fairer and market-driven loan terms for all borrowers. Additionally, delaying student loan interest rate accrual for low-income families will ensure financial support to those students who need it the most. Students and families also would benefit immensely from the bill’s elimination of origination fees. We believe such changes will have a real and lasting impact on helping make college more affordable.” ••