United States Senator Bill Nelson (D-Florida) is set to introduce a new piece of legislation that lowers federal student loan interest rates, while also allowing student borrowers to refinance their current federal loans.
Nelson’s bill will lower federal student loan interest rates and seeks to permanently cap them for undergraduate students at 4 percent.
Additionally, Senator Nelson’s proposed legislation will enable current student loan borrowers to refinance their federal loans in order to receive the more favorable interest rates that would come from his proposition.
This news was first reported by WFTV 9 ABC, a local news station in Florida. Senator Nelson is expected to arrive in the Orlando area later today, July 5, to discuss his ideas with recent college graduates. If all goes to plan, Nelson’s bill will be introduced on the Senate floor next week.
In May, LendEDU had reported that student loan borrowers will face an interest rate hike in July from the previous rate of 3.76 percent to the current rate of 4.45 percent. Right on schedule, the Department of Education published their new interest rates on their Federal Student Aid site, effective July 1, 2017.
For undergraduates, both Direct Subsidized and Unsubsidized Loans have interest rates of 4.45 percent. The interest rate on Direct Unsubsidized Loans for graduate students rose to 6 percent, while the interest rate on Direct PLUS Loans for graduate students and parents rose to 7 percent.
It appears that Senator Nelson has made student loans a top priority for his office. Back in April, Nelson, along with many other senators, penned a letter to Secretary of Education Betsy DeVos that expressed their concern over reports that said student borrowers were not able rely on the notices they received regarding their eligibility for Public Service Loan Forgiveness.
Author: Andrew Rombach
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