wsiltv.com - Durbin Proposes Lower Student Loan Interest Rate

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By Amy Fox
By Jared Roberts

Every month, 1.7 million people in Illinois are paying on a student loan, but the price of those loans could be going down.

U.S. Senator Dick Durbin made a stop at SIU Wednesday to discuss legislation that would lower student loan interest rates for current and former students.

Currently, many borrowers with outstanding student loans have interest rates of seven percent or higher. If passed, the bill would reduce student loan interest rates to 3.86 percent.

"This is a way to reduce the monthly payments, to pay off the loans sooner and for the students to get on with their lives. It's incredible to think that students between 19 and 20 years old have $30,000 to 40,000 in debt. But it's a fact," said U.S. Senator Dick Durbin.

The bill would allow many borrowers to refinance their loans with the lower rates. That federal legislation will likely be brought up next year.

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