This solution requires enabling federal education loan borrowers to have a lower life expectancy rate of interest through the duration of their payment term. This idea originates from the home loan market, where refinancing typically pairs a diminished interest with an extended payment term. This proposition will be most reliable whenever combined with reduced caps on rates of interest for many future federal education loan borrowers.
Estimated expense: There will not be a general general public rating of an educatonal loan proposal that is refinancing 2014, once the Congressional Budget Office estimated one option would price about $60 billion over 10 years to refinance federal loans. 51 it’s uncertain just what the expense of this type of proposal could be today, which is also very impacted by the rate offered. (więcej…)