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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
  • The house has not voted
      house Committees
      House Committee on Education and the Workforce
      Higher Education and Workforce Training
    IntroducedAugust 2nd, 2013

What is it?

This bill would change the interest rates for students borrowing through the William D. Ford Federal Direct Loan program. Basically, students would be authorized to modify their interest rate to the rate they had when the loan was first disbursed, or first applied for. 


This new interest rate would be fixed for the life of the loan — unless the borrower chooses to change the rate, and they can do so at any time.

Impact

People who have borrowed student loans through the William D. Ford Federal Direct Loan Program, companies that service student loans, the Department of Education.

Cost

A CBO cost estimate is unavailable.

More Information

In-Depth:

Student loan debt has been linked with the sluggish housing recovery as borrowers can’t afford to make an investment in a home, in addition to declining sales of new cars.


The average student loan balance for a person in their twenties has increased from $15,900 in 2005 to over $25,500 in 2014. While borrowers are struggling, the federal government made a $41 billion profit on student loans in 2013.


Media:

Sponsoring Rep. Mark Pocan (D-WI) Press Release

Rep. Mark Pocan (D-WI) Op-Ed in the Huffington Post

The Capital Times (In Favor)

Wisconsin Public Radio (Related bill)

CBO Analysis of Student Loan Program Modification Options (Context)

(Photo Credit: Flickr user Truthout.org)

Official Title

To authorize borrowers of loans under the William D. Ford Federal Direct Loan Program to modify the interest rate of such loans to be equal to the interest rate for such loans at the time of modification.

    With student loan debt at an all time high of$1.2 trillion and the average student graduating with $30,000 in debt, it is more important than ever before to ensure that students can borrow at the lowest interest rates possible and have their debt forgiven as soon as possible in order to enable young people to contribute to the economy in whichever way they can.
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    It’s becoming increasingly hard for graduating students to find careers in their respective majors and I think being able to refinance their loans would be no difference than refinancing any loans.
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    Please help
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    Why have we made student loans a prison sentence?
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    You can refinance just about everything else why not allow student loans?
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    You can refinance your house, car, but even if you go bankrupt, you're student loan debt is still there. It's been crooked almost since its inception, but this is one small step to make it less of a colossal screw up and more like how it was intended to be used: to help those who cannot otherwise afford it to go to college.
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    My husband and I have been strapped with student loans at 7.25% for years. We combined our loans when we got married. Because of some rule about consolidation, we are not allowed to switch to a lower rate. We will never pay these things off.
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    I have loans that I took to be able to go to the college and they are very expensive to pay back, if lower rates it would be easier to keep up with the payments.
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    Absolutely they should be able to refinance their student loans. We have problem in this country where students are overly burdened by student loans
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    It is important because the amount needed to be borrowed is going up and the need for a collage degree is going up but yet there is more student loan debt because of this. And the amount you pay monthly is more then some mortgages.
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    Of course!
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