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New Rules for Federal Student Loan Refinancing and Interest Rates

This act introduces a program for refinancing federal student loans, potentially lowering monthly payments through new, reduced interest rates. It also simplifies loan repayment for lower-income individuals and eliminates origination fees for new loans, meaning fewer costs for future students. These changes aim to ease the financial burden of education.
Key points
Ability to refinance existing federal student loans (Direct and FFEL) into new loans with lower interest rates, potentially reducing monthly payments.
New student loans (starting July 1, 2021) will have lower, fixed interest rates tied to Treasury notes, with set caps.
Elimination of origination fees for new federal student loans, meaning students will receive the full loan amount without deductions.
Improvements to income-driven repayment plans and the Public Service Loan Forgiveness program, including counting prior payments for refinanced loans.
Option for deferment during studies or residency for students with low expected family contributions (up to $10,000) without interest accrual.
article Official text account_balance Process page
Expired
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Additional Information
Print number: 117_HR_1918
Sponsor: Rep. Garamendi, John [D-CA-3]
Process start date: 2021-03-16
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Student Loan Refinancing and Recalculation Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_1918.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-03-16.

What are the main provisions?

Key points include:

  • Ability to refinance existing federal student loans (Direct and FFEL) into new loans with lower interest rates, potentially reducing monthly payments.
  • New student loans (starting July 1, 2021) will have lower, fixed interest rates tied to Treasury notes, with set caps.
  • Elimination of origination fees for new federal student loans, meaning students will receive the full loan amount without deductions.
  • Improvements to income-driven repayment plans and the Public Service Loan Forgiveness program, including counting prior payments for refinanced loans.
  • Option for deferment during studies or residency for students with low expected family contributions (up to $10,000) without interest accrual.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Garamendi, John [D-CA-3].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Education and Labor.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Education Economy