Student Loan Refinancing and Recalculation Act of 2021
Floor Speech
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Mr. GARAMENDI. Madam Speaker, today I reintroduce the bipartisan ``Student Loan Refinancing and Recalculation Act'' to address the ballooning student loan debt crisis crippling millions of Americans and their families. I thank my bipartisan co-lead Congressman Fitzpatrick (R-PA) and the other original cosponsors for their support.
This legislation would allow students to refinance their federal student loan interest rates, lower future student loan interest rates, eliminate origination fees on student loans, delay student loan interest rate accrual for low-income and middle-class borrowers while they are pursuing their education, and allow for borrowers in medical, veterinary or dental residencies to defer payments until the completion of their professional accreditation program.
With over 45 million Americans burdened by student loan debt, the education debt crisis has reached an epidemic level. The total student loan debt in America has reached nearly $1.7 trillion according to the Federal Reserve.
The need to service these debt loads often prevents graduates from making important purchases like houses or cars, and it also can make people more hesitant to take risks like starting a new business. Cumulatively, this mountain of debt slows down our economy and makes it less entrepreneurial, productive, and vibrant.
Most student loan debt is owed to the federal government, at interest rates of up to 5.30 percent or more for earlier loans. That percentage far exceeds the market rate for most government loans or U.S. Treasury bonds. Americans with student loans should be able to reasonably refinance their debt just as they would for a mortgage or any other consumer loan.
The ``Student Loan Refinancing and Recalculation Act,'' which I have sponsored since the 114th Congress, would relieve some of the debt burden faced by American students and their families, while also ensuring that the federal government is not making a profit on the backs of students.
Madam Speaker, I urge all members of the House to join us in cosponsoring the ``Student Loan Refinancing and Recalculation Act'' and to work to address this crisis facing so many Americans.
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