The Student Loan Refinancing Act of 2026 creates a new federal refinancing program allowing borrowers with federal student loans, including Stafford Loans, PLUS Loans, and consolidation loans, to refinance at new fixed interest rates tied to current loan rates. The Department of Education must begin accepting refinancing applications within 30 days of the bill's enactment, with borrowers able to refinance up to twice within a 10-year period and allowed to change their repayment plans. Refinanced loans become Federal Direct Loans with no origination fees or loan limit restrictions, and borrowers can count payments made on their original loans toward income-based repayment plans and public service loan forgiveness programs. The bill requires the Department of Education and the Consumer Financial Protection Bureau to conduct a public information campaign to notify eligible borrowers about the refinancing opportunity. This legislation aims to give federal student loan borrowers more flexibility in managing their debt by allowing them to secure potentially better interest rates without losing credit for their prior payments toward forgiveness programs.
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