[Congressional Record Volume 150, Number 31 (Thursday, March 11, 2004)]
[Senate]
[Page S2722]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. BOXER:
  S. 2198. A bill to provide for refinancing of consolidated student 
loans; to the Committee on Health, Education, Labor, and Pensions.
  Mrs. BOXER. Mr. President, today, I am proud to introduce the 
Consolidated Student Loan Reduction Act of 2004.
  A college education is becoming more and more crucial as American 
workers seek to compete in the global marketplace. Yet, the cost of a 
college education is rising each year, making it less accessible to low 
and moderate income individuals. While grants and scholarships are 
available, students have come to increasingly rely on student loans. 
Between 1992 and 2002, Federal student loans increased by 165 percent, 
and in 2003, $65 billion--or 70 percent of total Federal student aid--
was in the form of loans. The average debt for a college graduate is 
$17,000, and it can exceed $100,000 for a graduate student.
  Under Federal law, and in order to receive longer repayment terms, 
individuals may consolidate their student loans into one loan. The 
interest rate on the consolidated loan is fixed. So while current law 
gives individuals a longer time to repay their student debt, it does 
not allow them to take advantage of the low interest rates that prevail 
in the marketplace today. Graduates may refinance their houses at lower 
rates but cannot do the same with student loans.
  My bill would change that and would permit individuals to refinance 
their consolidated Federal loans at the same interest rate as Federal 
Stafford loans, which fluctuate with the market and are generally below 
the prevailing market rate. Individuals could refinance anytime their 
consolidated loan rate exceeded 1 percent of the Stafford loan rate. 
And under my bill the borrower is not required to pay any fee or costs 
when they refinance.
  There are many in Congress who have introduced legislation to make a 
college education more accessible and affordable to American students. 
I support many of those efforts. My modest bill is a step in this 
direction, and I encourage my colleagues to support this effort.
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