A new senate bill introduced by Sherrod Brown would give those with student loans the ability to refinance at lower interest rates. Many lawmakers and economists are concerned about the $1.2 trillion dollars owed by students today for their education. Some believe that if a large percentage of these borrowers were to default on student loans, it could plunge the U.S. economy into chaos. This was the catalyst for Brown’s bill.
Senator Brown believes that students should be able to take advantage of the historically low interest rates along with previous student borrowers. Many other legislators also agree that keeping interest rates on student loans low is more likely to prevent thousands of students from having to default on their outstanding debt. This also keeps the Nation’s economy more stable.
The average student college debt owed is $26,000 and with the economy still floundering, many recent graduates have not been able to find jobs that pay what they were expecting to earn when originally enrolling into their higher education programs. Over half of the student loans in the U.S. are financed above 6% while the current interest rate hovers between 3.5% and 5%.
If a borrower is having trouble making their student loan repayments, there are a number of programs for refinancing student loans. Private and federal student loan debt cannot be consolidated or financed together. However, consolidating loans can help reduce debt for students who have more than one monthly loan payment.
Refinancing college loans can lower monthly payments, but may actually increase the total amount of interest paid throughout the life of the loan. Nevertheless, refinancing is the best way to get student loans out of default status.
We offer FREE 30 minute consultations on how to refinance student loans. Our knowledgeable consultants assist student loan borrowers Nationwide and have been repeatedly successful at helping with student loan refinance, consolidation, discharge and forgiveness programs.