Stay Curious. Stay Connected.
MailNewsletters♡Donate Now
Sign up
*Password must be at least 8 characters and contain one uppercase letter, one lowercase letter, one number and one symbol.
Already have an account?
By submitting, you consent that you are at least 18 years of age and to receive information about MPR's or APMG entities' programs and offerings. The personally identifying information you provide will not be sold, shared, or used for purposes other than to communicate with you about MPR, APMG entities, and its sponsors. You may opt-out at any time clicking the unsubscribe link at the bottom of any email communication. View our Privacy Policy.
Sign in to your profile
Forgot Password?
New to MPR News?
Welcome back
to news
for you
Reset Password

Enter the username on file and we'll send you a code to reset your password.

Still require assistance or not sure what your User Name is?
Welcome back
to news
for you
Email Verification

A verification code has been emailed to

Still awaiting the code?
On Campus Blog
Alex Friedrich

Franken: We need to refinance student loans

Go Deeper.

Create an account or log in to save stories.

Log inCreate a free Account

Like this?

Thanks for liking this story! We have added it to a list of your favorite stories.

Show me!

U.S. Senator Al Franken is cosponsoring a bill that would enable borrowers to refinance old student loans.

The Minnesota Democrat says interest rates as high as 10 percent are one reason graduates carry so much debt.

"It's not good for the economy," he said. "It prevents Americans from making the kinds of decisions that help economic growth, decisions -- to buy a home."

Under the Bank on Students Emergency Loan Refinancing Act, authored by Sen. Elizabeth Warren (D-Mass.), both public and private loans could be refinanced at current rates. Those are 3.86 percent for undergraduate loans, 5.41 percent for graduate school loans, and 6.41 percent for parent loans.

Hamline University graduate student Will Schultz told reporters he'll have about $160,000 in debt when he's done. The interest rates on some his loans are at 8 or 9 percent.

The bill "would be a godsend for me," he said. "It would give me a chance to do things that I would want to do."

Analyst Tricia Grimes at the state Office of Higher Education estimates that refinancing a 15-year, $30,000 loan from 6.8 percent could save a borrower more than $8,000 over the life of the loan.

This session, Minnesota legislators have also been considering legislation that would allow the state to form its own refinancing program.

Grimes said that if the federal legislation passed, it would negate the need for the state program.