KUNM: Some New Mexico Lawmakers Support Cutting Student Loan Interest Rates

With college graduation right around the corner some New Mexico lawmakers are drawing attention to a bill in Congress that would allow people to refinance their old student loans with the federal government for lower interest rates.

So far 32 lawmakers have signed onto the measure, including New Mexico’s Senator Martin Heinrich, who says the government shouldn’t be in the business of predatory lending.

“I don’t think we should be financing our government operations by charging high interest rates to student loans,” Heinrich said.

The Bank on Students Emergency Loan Refinancing Act would cut rates 3 percent to 6 percent on many loans.  

Republicans in the Senate have yet to voice support for the legislation that has been assigned to committee, even though last year lawmakers approved a similar bill for current students.

National student loan debt is at about $1.2 trillion.