Senator Elizabeth Warren is sponsoring legislation that would let borrowers with federal and private loans refinance their balances at lower interest rates, Bloomberg News reported today.
Student-loan borrowers have amassed more than $1.2 trillion in debt and even the President is finally waking up to the urgency of this crisis and the resultant drag on the overall economy.
Recently, the President issued an executive order to expand a program easing student-loan payments and he also endorsed Warren’s bill. Senator Warren proposal would help former graduate students, whose federal loans typically carry higher rates than those of undergraduates – some as high as 8.5 percent.
Senator Warren’s bill was co-sponsored by Democratic Senator Al Franken of Minnesota and Dick Durbin of Illinois. The important component of any significant student loan legislation is that it would assist both public and private student loan borrowers in Michigan, as well as the Great Lakes Bay region and the entire country.