ALBANY, N.Y. – New York Senator Kristen Gillibrand is pushing new legislation that would allow college graduates to refinance their student loans.
It’s estimated that across New York, college graduates have an average of $27,000 in student loan debt. Gillibrand wants graduates to be able to refinance their loans similar to a mortgage or business loan.
She said it would save graduates about $10,000.
“They’re in their twenties and thirties. Instead of paying interest back to the federal government, they want to buy a house, start a family, hope to start a business,” she said. “Those dollars would be better invested in the economy than just sending it back to Washington.”
The Congressional Budget Office said the federal government currently makes 36 cents in profit on every student loan dollar it puts out.