Student Loan Refinancing Act of 2026

This bill would require the U.S. Secretary of Education to start a program, within 30 days of the law taking effect, that lets borrowers refinance certain federal student loans, including older FFEL program loans, into federal Direct Loans. The new loan would carry the interest rate offered on new federal loans of the same type on the refinancing date, and that rate would stay fixed for the life of the loan. Consolidation loans would get a weighted average rate using the lower of the current or original rate for each loan inside them. Refinancing would not add an origination fee, extend the repayment period, or count against loan limits, and a loan could be refinanced no more than twice in 10 years. Past payments would generally count toward income-driven repayment and Public Service Loan Forgiveness, except that for refinanced FFEL loans only payments made after refinancing would count toward Public Service Loan Forgiveness.

Full text and official record on Congress.gov

Sponsors

• Michael R. Turner Republican sponsor
• 3 cosponsors