Garamendi (Contributed photo — Rep. John Garamendi)
This week state senator John Garamendi (D-CA08) was one of a few representatives- including Brian K. Fitzpatrick (R-PA01) – to reintroduced the bipartisan “Student Loan Refinancing and Recalculation Act.” The act aims to address the ballooning student loan debt crisis facing over 40 million American students and their families.
According to the White House, total student loan debt in America has reached over $1.6 trillion, approximately 92 percent of which is held by the federal government at interest rates of up to 8.05 percent. That percentage far exceeds the market rate for most other government loans.
The “Student Loan Refinancing and Recalculation Act” (H.R.5710) would aim to allow students with federal loans to refinance their interest rates, lower future interest rates, eliminate origination fees on student loans, defer interest rate accrual for low-income and middle-class borrowers while they are pursuing their education, eliminate interest capitalization for federal student loans, and allow for borrowers in medical, dental, or veterinary residencies to defer payments until the completion of their program.
Garamendi said that the bill would help to relieve some of the debt burden, while ensuring the federal government is not making a profit.
“The price of a college education is too high for most Americans,” said Garamendi in a news release. “The average 2023 graduate owes more than $37,338 in student loan debt with many borrowers owing much more. This mountain of debt prevents graduates from reaching important milestones such as starting a family, buying a home, or opening their own business.”
The “Student Loan Refinancing and Recalculation Act” (H.R.5710) is endorsed by the Higher Education Loan Coalition, University of California, Academy of General Dentistry, American Dental Association, American Student Dental Association to name a few.
“The University of California strongly supports U.S. Representative John Garamendi’s bill, the Student Loan Refinancing and Recalculation Act,” said Katherine S. Newman, University of California Provost. “We are committed to the goal of debt-free education for our students; this legislation would be a major step forward for UC graduates, especially those who have found it necessary to take on debt to complete their education. Our students would enjoy greater liberty to pursue an advanced degree, purchase a car or home, or start a family.
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