03.17.15

Congresswoman Lee Co-Sponsors Bill to Help More Than 2.3 Million Californians Struggling with Student Loan Debt

WASHINGTON, D.C. – Today, Congresswoman Lee announced her co-sponsorship of Congressman Joe Courtney’s (D-CT) Bank on Students Emergency Loan Refinancing Act of 2015. The bill would allow borrowers to refinance their students loans to a lower rate, similar to the rate available on new student loans. Some borrowers could refinance undergraduate loans at 3.86 percent.

“Too many people are putting their futures on hold because they are buried under mountains of student loan debt. Student loan debt now totals more than one trillion dollar and has grown to be the second largest source of debt in our nation.

This massive debt burden is crippling our economy as families put off major purchases or saving for their future.

Refinancing a home or car loan is standard practice but current law prevents student loans from being refinanced. This legislation is about common sense and fairness.

According to the Department of Education, this legislation will help more than 2.3 million Californians and the average borrower would save $2,000 over the life of his/her loan.

While this bill is not the silver bullet to addressing college affordability and the student loan crisis, it is an important first step to give people the option to refinance their loans at a lower interest rate.”

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Congresswoman Lee is a member of the Appropriations and Budget Committees, the Steering and Policy Committee, is a Senior Democratic Whip, former chair of the Congressional Black Caucus and co-chair of the Progressive Caucus. She serves as chair of the Whip’s Task Force on Poverty and Opportunity.