Bill would cut student loan rates, provide relief to millions with student loan debt

Gan Golan, of Los Angeles, dressed as the "Master of Degrees," holds a ball and chain representing his college loan debt, during Occupy DC activities in Washington last year.

A Florida senator says he wants to help college students who are facing tens of thousands of dollars in federal student loan debt by capping loan rates.

Senator Bill Nelson filed legislation this week to cap interest rates at 4 percent. The bill would also allow borrowers with existing loans to refinance their loans to a new lower rate.

“If we really want to make higher education more accessible in this country, we have to make it more affordable,” Nelson said. “If you can get a home loan at 4 percent, why can’t students get an education for the same rate?”

Federal loans for graduate students would be capped at 5% and loans for parents of undergraduate students would be capped at 6%.

Nelson says there are more than 43 million Americans with student loan debt. He says approving the legislation would help make higher education more affordable for students.

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