0% Student Loan Interest: Courtney Introduces Bill to Allow Federal Student Loan Borrowers to Refinance to Zero-Percent through December 2024

0% Student Loan Interest: Courtney Introduces Bill to Allow Federal Student Loan Borrowers to Refinance to Zero-Percent by means of December 2024

NORWICH, CT—Today, Congressman Joe Courtney (CT-02) launched the Zero-Percent Student Loan Refinancing Act. The new laws would enable Americans with public student loans to refinance their loans to an rate of interest of 0% till December 31, 2024. Recently, the Federal Reserve Board and its Chairman Jerome Powell declared that the benchmark rate of interest will stay at primarily zero for the steadiness of 2021, 2022, and properly into 2023, a mirrored image of the continued financial challenges introduced on by the COVID-19 pandemic. Rep. Courtney’s invoice would give public debtors the identical alternative to reap the benefits of this low-rate atmosphere that so many debtors in different sectors of the financial system will make the most of. Upon introduction of the invoice immediately, Courtney was joined by Representatives Jahana Hayes (CT-05), Eleanor Holmes Norton (DC-At-large), John Larson (CT-01), Joe Morelle (NY-25), Ed Perlmutter (CO-07), Chellie Pingree (ME-01), Albio Sires (NJ-08), Marilyn Strickland (WA-10), and Frederica Wilson (FL-24) as unique co-sponsors.

“Today’s jobs numbers should be a wake-up call to a lot of armchair economic experts that even though our recovery is moving forward, we’ve still got big challenges to overcome, and people still need support,” mentioned Congressman Courtney. “That’s why President Biden signed the American Rescue Plan into law, and it’s why the Federal Reserve has extended its zero-percent benchmark interest rate atmosphere well into 2023. That zero-percent benchmark will give financial breathing room to thousands of homeowners, small businesses and others, and it absolutely should—they need it. But so do working Americans with publicly held student loans who cannot refinance unless Congress changes the law. Student loan borrowers aren’t only young people just entering the economy—they’re moms and dads, small business owners, teachers and nurses, many of whom are trapped by law with legacy student loans with sky-high interest rates. They deserve the same opportunity to refinance their debt that so many Americans have right now, and the Zero-Percent Student Loan Refinancing Act would deliver that opportunity for them.”

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In different sectors of the financial system, mortgage holders, companies, auto loan holders, and others have been in a position to search reduction from the COVID-19 financial fallout by refinancing their debt to traditionally low charges. However, in contrast to different debtors, Americans with current student debt haven’t been in a position to entry the lowered charges because the starting of the pandemic. Many older debtors, together with many millennials, who graduated from establishments of upper training ten or extra years in the past, are locked into charges of practically 7%. The Zero-Percent Student Loan Refinancing Act would rectify this inequity and provides student loan debtors entry to the low-rate atmosphere that Americans in different sectors of the financial system are profiting from.

Specifically, Rep. Courtney’s Zero-Percent Student Loan Refinancing Act would:

  • Allow student loan debtors to refinance their federal loans to 0% – all eligible federal FFEL, Direct, Perkins, and Public Health Service Act student loan debtors may refinance their high-interest loans right down to 0% by means of December 31, 2024.
  • Automatically refinance debt for Direct loan holders.

Rep. Courtney has labored for years to provide working Americans a good deal on student loan debt, and through COVID-19 he led the hassle within the House to provide student loan debtors entry to the identical lowered rates of interest that so many others had taken benefit of. In July 2020, Courtney was joined by Senator Elizabeth Warren (D-MA) in introducing the bicameral Bank on Students Coronavirus Emergency Loan Refinancing Act (H.R. 7449) to the earlier 116th Congress. Click right here to learn extra.

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The Zero-Percent Student Loan Refinancing Act builds on that effort, and would make sure that working Americans with student loan debt are given the identical increase from 0% rates of interest that so many others are counting on to get better economically.

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