(WLNS) – Here’s a number to consider: Student loan debt nationwide is increasing at a rate of nearly $2,900 per second. Today student loan debt is topping $1.2 trillion and climbing.
Now Michigan Senator Gary Peters is joining 28 other senators to introduce legislation that would allow borrowers to refinance student debt at lower interest rates. The “Bank on Students Emergency Loan Refinancing Act” would give borrowers with outstanding debt to refinance that debt at the lower 3.86 percent rate that Congress approved for new student loans taken out in 2013. Prior to that interest rates for student loans could be 7 percent or higher.
“If you can refinance your mortgage, you should be able to refinance your student loans, and this bill would benefit nearly 960,000 borrowers across Michigan working to pay off their outstanding student loan debt,” said Senator Peters.
There is currently more outstanding student loan debt than credit card debt in the US. According to Senator Peters’ office nearly a million more borrowers are falling behind on their student loans compared to this time last year.
6 News interviewed Sen. Peters today and will have more of his comments on student debt tonight on 6 News after the NCAA games tonight.