WASHINGTON EXAMINER — A measure to allow student borrowers to refinance their college debt at current low interest rates would cost the federal government $51 billion over the next 10 years, the Congressional Budget Office reported Wednesday.
The bill, introduced by Sen. Elizabeth Warren, D-Mass., and other Senate Democrats, would let borrowers of federal and private student loans change the terms of the loans to those of new federal direct loans. For the 2014-2015, school year, the interest rate on new federal direct loans is 4.66 percent. That rate was determined by a student loan reform bill passed last summer that tied the rate on federal loans to the 10-year Treasury note.
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