U.S. Sen. Kirsten Gillibrand is proposing new legislation to ease the burden for students who have borrowed to pay for their education.
Gillibrand announced legislation that would allow student borrowers currently repaying their federal student loans to refinance at a lower interest rate. The Federal Student Loan Refinancing Act would enable students and graduates who have an interest rate above 4 percent to refinance their federal loans at a lower fixed rate of 4 percent. Gillibrand says a majority of federal student debt is set at an interest rate higher than 6 percent.
The senator says the bill would lower rates for nearly nine in 10 federal student loans nationwide. In New York, there are 2.7 million borrowers and 37 million nationwide.