Understanding The Bank on Students Emergency Loan Refinancing Act and Its Impact

The bill proposed by Senator Warren addressed this issue in two key ways. First, it would allow eligible borrowers to refinance their federal student loans through a federal refinancing program. For example, borrowers with Direct and Federal Family Education Loan (FFELP) loans would have been able to refinance to the lower interest rates of 2013-2014.

Second, borrowers who were in good standing would have been able to refinance private student loans through the same federal program and receive the 2013-2014 rate. Any private student loans refinanced into federal student loans would be given all of the protections of the federal student loan program.

Read more