US Sen. Kirsten Gillibrand pushes bill to lower student debt

401(k)2013/via Flickr
May 14, 2014

US Senator Kirsten Gillibrand is pushing for legislation to allow college graduates to refinance their federal student loans.

The Federal Reserve Bank of New York says the average student loan debt in the state is about $25,000. Gillibrand says it’s unfair to saddle students with so much debt.

"And most of this debt is held by the federal government," says Gillibrand. "So, it’s absurd to me that the federal government should be making money off the backs of our students, prohibiting them from starting their businesses, starting their families and buying homes."

The bill would allow anyone with a student loan to refinance. Undergraduates could refinance with an interest rate of 3.8 percent and graduate students could do so at 5.41 percent.