Sending Office: Honorable John Garamendi
Sent By:

Current Co-Sponsors: Fitzpatrick, Bordallo, Boyle, Bustos, Carbajal, Cohen, Costa, Chu, Cuellar, Doggett, Gonzalez, Katko, Krishnamoorthi, Kuster, Lowenthal, McNerney, Meeks, Meng, Nolan, Norton, Pingree, Roybal-Allard, Tonko

Endorsed by: Higher Education Loan Coalition, National Association of Graduate and Professional Students, Student Advocates for Graduate Education (SAGE), University of California Student Association, American Association
of Orthodontists, Academy of General Dentistry, American Academy of Oral and Maxillofacial Pathology, American Academy of Pediatric Dentistry, American Academy of Periodontology, American Association of Endodontists, American Association of Oral and Maxillofacial
Surgeons, American Association of Public Health Dentistry, American Association of Women Dentists, American Dental Association, American Dental Education Association, American Society of Dentist Anesthesiologists, American Student Dental Association, National
Dental Association, Student National Dental Association, and California Society of Anesthesiologists

Dear Colleague,

With over 40 million Americans burdened by student loan debt, the education debt crisis has reached an epidemic level. In February of 2017, the Federal Reserve Bank of New York reported that total student loan debt in America had reached $1.3 trillion. According
to the Wall Street Journal, the average class of 2016 graduate will have to pay back over $37,172 in student loan debt.

The need to service these debt loads often prevents graduates from making important purchases like houses or cars, and it also can make people more hesitant to take risks like starting a new business. Cumulatively, this mountain of debt slows down our economy
and makes it less entrepreneurial, productive and vibrant.

The bulk of this debt–$875 billion, according to media reports—is held by the federal government, at interest rates of up to 6.84%. That percentage far exceeds the market rate for most government loans. People with student loans should be able to refinance
their debt just as they would for a mortgage or any other loan.

To address this problem, I am sponsoring the Student Loan Refinancing and Recalculating Act. This bill would relieve some of the debt burden faced by American students and their families, while ensuring that the federal government is not making a profit
on the backs of students.

This bill would:

1. Allow students to refinance their student loan interest rates to the 10-year Treasury note rate, plus 1%. The ability to refinance extends to both graduate and undergraduate student loans, throughout the lifetime of the loan.

2. Set future student loan interest rates at the 10-year Treasury note rate, plus 1%. This recalculation of student loan interest rates will ensure that the Federal Government is not making a profit off of students.

3. Eliminate origination fees on student loans.

4. Delay student loan interest rate accrual for borrowers with an expected family contribution of less than, or equal to, $10,000 while they are in school. Low-income and middle-class borrowers would not accrue interest on their student
loans while they are pursuing their education.

5. Allow for borrowers with an expected family contribution greater than $10,000 to accrue only the base rate on their unsubsidized loans while they are in school. This base rate is equal to the 10-year Treasury note rate in effect when
the loan is disbursed.

6. Allow for borrowers in medical or dental residencies to defer payments until the completion of their program.

All provisions in this bill would extend to both graduate and undergraduate student loans.

I urge you to become an original cosponsor on my bill that would help to ensure the accessibility and affordability of higher education to students and families. If you would like to become an original cosponsor or have any questions, please contact Garamendi’s
office at or Fitzpatrick’s office at


John Garamendi

Member of Congress

Brian Fitzpatrick

Member of Congress

Related Legislative Issues

Selected legislative information: Economy, Education, HealthCare

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