Student Loan Assistance
Sen. Elizabeth Warren (D-Mass.) introduced the Bank on Students Emergency Loan Refinancing Act into the Senate a while back. The proposed legislation would have helped the millions of Americans who are drowning with federal and/or private student loans to obtain assistance by re-financing their debt at a 3.86% interest rate — the rate Congress set for federal student loans one year ago.
In her words: “Homeowners are refinancing. Small businesses are refinancing. We just want young people who got an education to have their shot.”
Unfortunately, Warren failed to get the 60 votes needed to advance the legislation. The bill was blocked by a 56-38 vote on the Senate floor. What this means is that students with loans issued prior to 2010 are stuck with their high-interest loans.
If you have private student loans issued prior to 2010 that carry high, burdensome interest rates, there is an option. Student loan assistance is available through debt settlement, and can often reduce the total balance owed so that your payments are going toward reducing and eliminating the debt, instead of toward paying interest.
Author: Kevin Fallon McCarthy