The vote for the Bank on Students Emergency Loan Refinancing Act has reached a standstill with both Senate Democrats and Republicans. Cloture on S. 2432: Bank on Students Emergency Loan Refinancing Act wants to put an end to the debate from the Senate to finally vote on the student loan amendments. However, the voting results of 56 to 38 resulted in a filibuster mid-June.
If the act is eventually voted into law, the Secretary of Education would establish a program for refinancing the unpaid principal, accrued unpaid interest and late charges on William D. Ford Federal Direct Loans (DLs) from qualified borrowers and Direct Consolidation Loans applied for before July 1, 2013.
Interest rates would include the unpaid balance, set the interest rate on each component loan at the lesser of the rate on the component loan for the 12 months beginning on July 1, 2013 and applying the weighted average. If the bill were enacted as a law, student loan borrowers would be eligible for refinancing.
Illinois Senator Mark Kirk voted nay to keep the debate going. Illinois Senator Richard Durbin voted yay so the act could finally be voted on as a potential law.
The sponsor for this act is Senior Senator from Massachusetts. Should it be passed in the Senate, it would still have to pass the House and signed into law by the president before it can be enacted.
Should there be a fixed interest rate set for unpaid student loans?
Depends on the amount
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