It has been estimated that Americans owe $1.2 trillion in student loan debt, and this number continues to rise. In fact, student loans have passed credit cards and vehicle loans to become the second largest source of personal debt, with mortgage loan debt being number one. In response to the growing public concern, Senate Democrats are putting student loans as one of their top election year platforms.
Elizabeth Warren (D-Mass.) has proposed legislation that would permit borrowers of student loans to refinance at lower rates. The Bank On Students Emergency Loan Refinancing Act would give those with outstanding federal and private student loan debt the opportunity to refinance at the rate offered to first-time borrowers. Holders of home mortgage or car loans are allowed to refinance their loans and it often saves them thousands of dollars by cutting their interest rates. If student loan borrowers could do the same, it could be significant in reducing the amount of debt for graduates.
“Exploding student loan debt is crushing young people and dragging down our economy,” said Senator Warren. “Allowing students to refinance their loans would put money back in the pockets of people who invested in their education. These students didn’t go to the mall and run up charges on a credit card. They worked hard and learned new skills that will benefit this country and help us build a stronger middle class and a stronger America.”
There is a provision in the proposed bill that raises income taxes on those who earn more than a million a year to pay for the lost federal revenue from government loans, which is likely to raise some objections. However, as national attention is increasingly given to the student loan debt problem, lawmakers will feel the pressure to reach compromises and find solutions.
The “defender of the little guy,” DeLadurantey Law Office, LLC student loan debt and bankruptcy matters (Chapter 7 and Chapter 13) in Milwaukee, South Milwaukee, West Milwaukee, and Milwaukee County, including the municipalities of Bayside, Brown Deer, Cudahy, Fox Point, Franklin, Glendale, Greendale, Greenfield, Hales Corners, Oak Creek, River Hills, Shorewood, St. Francis, Wauwatosa, West Allis, and Whitefish Bay. The firm also can handle your debt negotiations, debt relief, and mortgage loan modifications. Contact DeLadurantey Law Office, LLC by phone: (414) 377-0518. Like us on Facebook.