WASHINGTON, D.C. (WFSB) — Connecticut lawmakers want to help students pay off their loans.
Congressman Joe Courtney introduced a bill that would allow anyone with a public student loan to refinance it at 0 percent interest.
Representatives Jahanna Hayes and John Larson are co-sponsors of the bill.
If it passes, students would have three years to refinance and pay no interest.
The bill would also automatically refinance any “direct loans.”
“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,” Courtney said in a press release. “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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