Student loan debt has swelled to $1.4 trillion, surpassing total amount of credit card debt
(Washington, DC) – U.S. Senators Jeanne Shaheen (D-NH) and Maggie Hassan (D-NH) joined 34 of their Democratic colleagues today to reintroduce the Bank on Students Emergency Loan Refinancing Act. The legislation would allow those with outstanding student loan debt to refinance at the interest rates offered to new federal borrowers in the 2016-2017 school year. A previous version of the bill was voted on in the 113th Congress, and every Senate Democrat and three Senate Republicans voted to move the bill forward.
“Throughout New Hampshire, Granite Staters are struggling with the increasing costs of higher education and it’s hurting students, their families and our economy,” said Senator Jeanne Shaheen. “Students should be able to refinance their loans just like homeowners can refinance their mortgages. This legislation will help borrowers save thousands on their loans, continuing our effort to make college more affordable and help save students from a mountain of debt.”
“One of the biggest issues I hear about from students, families, and businesses across New Hampshire is the increasing burden of student loan debt,” said Senator Maggie Hassan. “This common-sense measure helps students struggling to make their loan payments by allowing students to refinance their loans at the current federal rate. We know that there is far more we must do to make higher education more affordable and to strengthen job training programs, and I will continue fighting to move this important legislation forward.”
Since the original bill was introduced in 2014, student loan debt has gone up more than $200 billion. In 2015, 70% of college seniors graduated with debt. And this year, more than one in four borrowers are in delinquency or in default on their student loans. One in seven borrowers defaults on federal student loans within three years of beginning repayment, and according to a recent analysis, a quarter of borrowers default over the life of their loans.
In addition to Shaheen and Hassan, original sponsors of the legislation in the Senate include Senators Elizabeth Warren (D-MA), Tammy Baldwin (D-Wis.), Michael Bennet (D-Colo.), Richard Blumenthal (D-Conn), Cory Booker (D-N.J.), Sherrod Brown (D-Ohio), Ben Cardin (D-Md.), Bob Casey Jr. (D-Pa.), Catherine Cortez Masto (D-Nev.), Tammy Duckworth (D-Ill.), Dick Durbin (D-Ill.), Al Franken (D-Minn.), Kirsten Gillibrand (D-N.Y.), Kamala Harris (D-Calif.), Martin Heinrich (D-N.M.), Heidi Heitkamp (D-N.D.), Mazie Hirono (D-Hawaii), Amy Klobuchar (D-Minn.), Patrick Leahy (D-Vt.), Joe Manchin (D-W.Va.), Ed Markey (D-Mass.), Bob Menendez (D-N.J.), Jeff Merkley (D-Ore.), Chris Murphy (D-Conn.), Patty Murray (D-Wash.), Gary Peters (D-Mich.), Jack Reed (D-R.I.), Bernie Sanders (I-Vt.), Chuck Schumer (D-N.Y.), Debbie Stabenow (D-Mich.), Tom Udall (D-N.M.), Chris Van Hollen (D-Md.), Sheldon Whitehouse (D-R.I.) and Ron Wyden (D-Ore.).