Udall Leads Effort to Lower Student Loan Rates, Lower Costs for More Than 760,000 Coloradans with Student Loan Debt
'When We Keep Higher Education Affordable, We Keep Success Within Reach for All Coloradans'
Citing growing student loan debt and the increasing cost of higher education, Mark Udall introduced legislation today that would help more than 760,000 Coloradans who have outstanding federal loans, according to U.S. Department of Education estimates. The Bank on Students Emergency Loan Refinancing Act would give borrowers the option to refinance their loans at this year's low rates, 3.86 percent for undergraduates and 5.41 percent for graduate students.
Udall's common-sense, student-friendly bill would be fully paid for through the enactment of the "Buffett Rule," which would ensure that billionaires do not take advantage of the federal tax code to pay lower tax rates than their secretaries.
"When we keep higher education affordable, we keep success within reach for all Coloradans. A bachelor's degree should open doors for graduates — not leave them with decades of crippling debt," Udall said. "This common-sense bill would allow students to benefit from today's low interest rates and could amount to hundreds or thousands of dollars a year in savings. I am committed to working to keep tuition rates affordable, but this bill is essential to help today's students save money and invest in their futures."
The Bank on Students Emergency Loan Refinancing Act would allow all students with Stafford Loans, Unsubsidized Stafford Loans, Federal PLUS Loans and Federal Consolidation Loans to refinance at this year's low rates. The bill also would allow students in good standing the option of refinancing their high-interest private student loans down to the rates offered to new federal student borrowers under the Federal Direct Loan Program.
The average student loan debt for a student in Colorado is $24,540, with more than half of Coloradan college students carrying some amount of debt.
Udall has been a strong advocate of keeping college affordable and within reach for all Coloradans. He led the effort last year to keep Stafford student loan interest rates from doubling. He also fought to ensure immigrants have access to in-state tuition, supporting Colorado's ASSET bill and the federal DREAM Act.