All proposals
Cap federal student loan interest at the 10-year Treasury rate
Community proposal — not legislation
This is an idea authored by a FiveVote user. Lawmaking happens through Congress, not through FiveVote.
Problem
Federal student loans currently carry rates well above market borrowing costs for the government, costing borrowers billions.
Proposal
Section 1. Federal student loan interest, beginning the following academic year, shall be set at the 10-year Treasury rate measured on June 1 preceding the academic year, plus 0.5% for servicing costs. Section 2. Existing federal loans may be refinanced at the same rate, one time, by borrower request. Section 3. No statutory floor on the resulting rate.
Community signal
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