By Patrick Cassidy.
(May 7, 2021) NORWICH, CT—Congressman Joe Courtney (CT-02) introduced the Zero-Percent Student Loan Refinancing Act. The new legislation would allow Americans with public student loans to refinance their loans to an interest rate of 0% until December 31, 2024. Recently, the Federal Reserve Board and its Chairman Jerome Powell declared that the benchmark interest rate will remain at essentially zero for the balance of 2021, 2022, and well into 2023, a reflection of the continued economic challenges brought on by the COVID-19 pandemic. Rep. Courtney’s bill would give public borrowers the same opportunity to take advantage of this low-rate environment that so many borrowers in other sectors of the economy will utilize. Upon introduction of the bill today, Courtney was joined by Representatives Jahana Hayes (CT-05), Eleanor Holmes Norton (DC-At-large), John Larson (CT-01), Joe Morelle (NY-25), Ed Perlmutter (CO-07), Chellie Pingree (ME-01), Albio Sires (NJ-08), Marilyn Strickland (WA-10), and Frederica Wilson (FL-24) as original co-sponsors.
“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,” said Congressman Courtney. “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.”
- Allow student loan borrowers to refinance their federal loans to 0% – all eligible federal FFEL, Direct, Perkins, and Public Health Service Act student loan borrowers could refinance their high-interest loans down to 0% through December 31, 2024.
- Automatically refinance debt for Direct loan holders.
