President Obama’s previous student loan reforms didn’t go far enough. The Whitehouse and Congress should enact legislation that will allow students, who have completed their degree, to refinance student loan debt, and reduce their interest rate payments to a meaningful level. Private-loan borrowers should also be able to consolidate their loans into the federal loan program.
Allowing alumni to refinance their student loan debt would allow them to repay their loans faster, while at the same time freeing up money that would be used in other parts of the economy.
With over 1 trillion in student loan debt we cannot afford to let our graduates default on those loans, to do so would be catastrophic to the economy and to the future of those who have strived to make their lives better.