Senator Elizabeth Warren (D-Mass.) recently proposed a bill called the “Bank on Students Emergency Loan Refinancing Act” that would permit student loan borrowers to refinance their existing loans for new loans with lower interest rates. The goal of the legislation was to potentially save graduates thousands of dollars. The White House announced that President Barack Obama supported the proposal, but it wasn’t enough to get the bill passed.
The financial industry opposed Warren’s bill. Allowing graduates to refinance their student loans would result in the loss of future interest income. Republicans reportedly also oppose the bill because Democrats are looking to increase taxes on the wealthy in order to offset the loss of future federal revenue.
Without Republican support, the bill did not pass and become law, failing by a vote of 58-38. Senators Susan Collins (R-ME), Bob Corker (R-TN) and Lisa Murkowski (R-AK) were the only Republicans to vote for the bill.
You can expect to see pressure put on Congress regarding the student loan issue, which is important to millions of individuals across the country. Our country is facing $1.3 trillion of student loan debt, making it the second largest form of consumer debt behind mortgage loans.
Lawmakers are making the issue of student loan debt one of their primary platforms for November’s elections. Regardless, both Democrats and Republicans can surely agree that something must be done to address the overwhelming amount of student loan debt in America.
Please keep in mind that every matter is different. If you have questions about your student loan debt, and you would like to schedule a no-cost consultation to discuss your options, please contact our office by completing the form on this website or calling us at (954) 516-2566.