Hillary Clinton Voices Support for Minnesota’s New Student-Loan Refinancing Initiative
As part of her campaign’s commitment to tackling the skytrocketing costs of higher education, making sure that students who start college can finish with a degree, and relieve the crushing burden of student debt, Hillary Clinton supports Minnesota’s new student-loan refinancing initiative. Under their recently announced new initiative, the SELF Refi program, a college graduate with $40,000 in student loans at 8 percent interest rate could save as much as $200 per month. Minnesota ranks fifth nationally in the average amount of college-loan debt carried by residents. Minnesotans have an average of nearly $32,000 in outstanding loans, according to the Project on Student Debt.
“I applaud Minnesota for taking bold steps towards ensuring that debt won’t hold Minnesotans back,” said Hillary Clinton. “If you can refinance your mortgage or your car loan, you should be able to refinance your student loan too. Under my New College Compact plan, we’ll enable you to refinance your loans and make it easier for you to enroll in income-based repayment programs, help borrowers who are in default get back on their feet to meet their obligations, and cut your interest rates so the government never profits from your loan.”
Hillary Clinton announced her own plan several months ago - the New College Compact. The New College Compact could save Graduates with Debt Thousands through Refinancing.
Students and families in Minnesota originated $3.1 billion in debt last year. Clinton’s plan could benefit a student who borrowed a cumulative total of $30,000 in direct loans at a higher rate of 6.8% in prior years:
· Borrower could repay up to $4,000 less in interest over the life of the loan.
· Monthly payment could fall by as much as $33 – or $400 over the year.
