Sen. Reed Outlines Bill Lowering Cost Of Student Loan Debt

May 14, 2014

On Capitol Hill, Sen. Jack Reed joined by Senators Al Franken and Elizabeth Warren outlined legislation Wednesday that curbs student loan debt.

The bill allows federal and private student loans to be refinanced at a lower rate with no refinancing fees. The interest on some loans can reach 14 percent. The bill lowers that to 3.86 percent. Reed said the bill is critical to the country’s future.

“We have literally gone from propelling people forward with federal investment education to holding them back with staggering debts,” said Reed. “That won’t work for them and that won’t work for our economy.”

Reed said the lowered interest rate is one Republicans in both the House and Senate have supported, so he hopes the bill will make it to the president's desk.

The average student loan debt for a Rhode Island student is more than 31,000, one of the highest in the country.

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