[Congressional Record Volume 167, Number 49 (Tuesday, March 16, 2021)]
[Extensions of Remarks]
[Page E257]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]





         STUDENT LOAN REFINANCING AND RECALCULATION ACT OF 2021

                                 ______
                                 

                          HON. JOHN GARAMENDI

                             of california

                    in the house of representatives

                        Tuesday, March 16, 2021

  Mr. GARAMENDI. Madam Speaker, today I reintroduce the bipartisan 
``Student Loan Refinancing and Recalculation Act'' to address the 
ballooning student loan debt crisis crippling millions of Americans and 
their families. I thank my bipartisan co-lead Congressman Fitzpatrick 
(R-PA) and the other original cosponsors for their support.
  This legislation would allow students to refinance their federal 
student loan interest rates, lower future student loan interest rates, 
eliminate origination fees on student loans, delay student loan 
interest rate accrual for low-income and middle-class borrowers while 
they are pursuing their education, and allow for borrowers in medical, 
veterinary or dental residencies to defer payments until the completion 
of their professional accreditation program.
  With over 45 million Americans burdened by student loan debt, the 
education debt crisis has reached an epidemic level. The total student 
loan debt in America has reached nearly $1.7 trillion according to the 
Federal Reserve.
  The need to service these debt loads often prevents graduates from 
making important purchases like houses or cars, and it also can make 
people more hesitant to take risks like starting a new business. 
Cumulatively, this mountain of debt slows down our economy and makes it 
less entrepreneurial, productive, and vibrant.
  Most student loan debt is owed to the federal government, at interest 
rates of up to 5.30 percent or more for earlier loans. That percentage 
far exceeds the market rate for most government loans or U.S. Treasury 
bonds. Americans with student loans should be able to reasonably 
refinance their debt just as they would for a mortgage or any other 
consumer loan.
  The ``Student Loan Refinancing and Recalculation Act,'' which I have 
sponsored since the 114th Congress, would relieve some of the debt 
burden faced by American students and their families, while also 
ensuring that the federal government is not making a profit on the 
backs of students.
  Madam Speaker, I urge all members of the House to join us in 
cosponsoring the ``Student Loan Refinancing and Recalculation Act'' and 
to work to address this crisis facing so many Americans.

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