The interest rates of student loans could be immediately eliminated and the future interest rates will be limited under a new proposed bill.
Student loan interest rates could be immediately eliminated. (Photo: USA Today)
Elimination of Student Loan Interest Rates
The U.S. lawmakers and some financial experts are calling on the Biden administration to immediately act and have a response after the Supreme Court struck the administration’s student loan forgiveness up to $20,000. Repayment of the student loan will resume this September 1.
In a published article in Business Insider, two Democratic lawmakers introduced a new bill titled Student Loan Interest Elimination Act that will refinance the interest rates on all existing federal loans to 0% and will limit the future interest rates to 4%.
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Proponents Released a Statement
According to a published article in The Hill, it is estimated that around 43 million student loan borrowers will benefit from this proposed legislation once it is approved.
Connecticut Rep. Joe Courtney said, “Students and families are already saddling the rising costs of a college education. The federal government should not exacerbate the problem by making money off borrowers’ federal student loans.”
He also added that “In fact, the average public university student who takes out a federal student loan today would pay $7,800 over the standard 10-year period in interest. That’s the difference between making mortgage or car payments, affording medical care, or saving for a stronger retirement.”
