What is Senate Bill S. 793?
This bill would allow borrowers to refinance their student loans at lower interest rates while at the same time consolidating loans and allowing the borrower to make only one payment per month, and deal with only a single loan officer.
The bill affects students dealing with student loan payments.
Cost of Senate Bill S. 793
The math here is a little complicated. The bill spends $51 billion over the next decade. However, the bill also plans to introduce a minimum tax of 30% for those making more than $1 million a year. That tax hike would in turn increase federal revenues by $72 billion over the next decade, leading to a deficit reduction of $22 billion over the same ten-year period.
The bill would allow students to refinance at the current rates of 3.86 percent for undergraduate loans and 5.41 percent for graduate loans. Refinancing of Parent Plus loans to the current 6.41 percent is also included in the bill. Currently, outstanding student loans carry interest rates as high as 9 percent.
Bank on Students Emergency Loan Refinancing Act
A bill to amend the Higher Education Act of 1965 to provide for the refinancing of certain Federal student loans, and for other purposes.