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Sen. Warren to propose bill that would allow student loan borrowers to refinance at lower rate

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FILE - In this Jan. 8, 2014 file photo, House Majority Leader Eric Cantor of Va. speaks about The Value of School Choice: The Release of the 2013 Education Choice and Competition Index, at the Brookings Institute in Washington. Lawmakers looking ahead to the November elections are putting renewed focus on education, tackling issues on Capitol Hill this week ranging from expanding charter schools to paying off student loan debt. (AP Photo/Susan Walsh)

WASHINGTON – Sen. Elizabeth Warren wants the next debate in Congress on student loans to focus on helping borrowers refinance their debt.

The Massachusetts Democrat planned to file a bill Tuesday that would open the door for potentially millions of borrowers of earlier federal loans to refinance that debt at the same rate that current recipients can get. Undergraduates, for example, qualify for loans at a 3.86 percentage rate.

The bill is part of a larger effort by Senate Democrats to focus on college costs leading to the November election.

Last year, Congress reached a bipartisan deal that ties federal student loan interest rates to financial markets for students who take out loans, starting last July.

The bill would be paid for by raising taxes on wealthy Americans. Passage could be difficult.

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