Politics aside, this is just good business. When Berkshire representatives rallied on Capitol Hill last week (including Sandy Carroll, Maureen McFarland, Church Davis, Steve Ray, Mary Jane White, Karen Climo, Mark Harris, Cortney Dupont, Debbie Dwyer and Anne Meczywor), U.S. Sen. Elizabeth Warren asked for our support on a bill that would help ease a growing burden on the economy and on young Americans particularly: crushing student debt.
Today, Tom Soloman, NAR President extended his thanks to Senator Elizabeth Warren on behalf of ALL REALTORS for filing “The Bank on Students Emergency Loan Refinancing Act,” S. 2432, which would help make repayments more manageable by allowing borrowers to refinance student loans, which right now they aren’t allowed to do. “If you want to see more young people live the dream of home ownership . . . and end the absurdity of the government making profits off the backs of young people . . . I am asking you to support this bill,” said Warren, a member of the Senate Banking, Housing, and Urban Affairs Committee.
“Home owners can refinance their mortgage loans . . . businesses can refinance their loans,” but the government doesn’t permit the refinancing of student loans. Why not? Warren estimated that borrowers would save $650 million a year in interest payments if they could refinance their debt. Some $1.3 trillion in student loans are outstanding, and the government is profiting over $60 billion a YEAR from them, as they are federally backed. That’s “wrong,” the Senator said.
About 40 million Americans today are making monthly payments on student loans, and each year another million college graduates join their ranks. Warren said it’s not unusual for students to graduate with $25,000 to $50,000 in debt, creating a burden than hobbles them just as they’re trying to enter the job market, buy a home, and get their lives started.
Read more: Where is Student Loan Debt the Worst?