0% Student Loan Interest: Courtney Introduces Bill to Allow Federal Student Loan Borrowers to Refinance to Zero-Percent through
“Today's jobs numbers should be a wake-up call to a lot of armchair economic experts that even though our recovery is moving forward, we've still got big challenges to overcome, and people still need support,” said
In other sectors of the economy, mortgage holders, businesses, auto loan holders, and others have been able to seek relief from the COVID-19 economic fallout by refinancing their debt to historically low rates. However, unlike other borrowers, Americans with existing student debt haven't been able to access the lowered rates since the beginning of the pandemic. Many older borrowers, including many millennials, who graduated from institutions of higher education ten or more years ago, are locked into rates of nearly 7%. The Zero-Percent Student Loan Refinancing Act would rectify this inequity and give student loan borrowers access to the low-rate environment that Americans in other sectors of the economy are taking advantage of.
* Allow student loan borrowers to refinance their federal loans to 0% – all eligible federal FFEL, Direct, Perkins, and Public Health Service Act student loan borrowers could refinance their high-interest loans down to 0% through
* Automatically refinance debt for Direct loan holders.
The Zero-Percent Student Loan Refinancing Act builds on that effort, and would ensure that working Americans with student loan debt are given the same boost from 0% interest rates that so many others are relying on to recover economically.