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Second Opinion

Learn about policy issues important to medical schools and teaching hospitals, with Executive Vice President Atul Grover, M.D., Ph.D.

Washington Highlights

As Federal Interest Rates Rise, Sen. Warren Introduces Refinancing Bill

May 9, 2014—On May 6, interest rates for federal loans during the upcoming 2014-2015 academic year were set to rise by 0.8 percentage points compared to current rates. As a result, interest rates for medical students‘ Direct Loans and Direct GradPLUS loans will increase to 6.21 percent and 7.21 percent, respectively.

Interest rates are fixed each year based on the 10-year Treasury note under legislation passed last summer [see Washington Highlights, Aug. 2, 2013]. 

Meanwhile, Senator Elizabeth Warren (D-Mass.) May 6 introduced the Bank on Students Emergency Loan Refinancing Act (S. 2292) to allow borrowers with federal Stafford loans dated prior to July 1, 2013, to refinance at the corresponding 2013-2014 academic year interest rates (5.41 percent for Direct Loans and 6.41 percent for GradPLUS).

Under the bill, the Department of Education would be tasked with setting a debt-to-income ratio to determine borrower eligibility for refinancing.

House Education and the Workforce Committee Ranking Member George Miller (D-Calif.) and Rep. John Tierney (D-Mass.) plan to introduce companion legislation in the House.

Contact:

Matthew Shick, JD
Director, Gov't Relations & Regulatory Affairs
Telephone: 202-862-6116
Email: mshick@aamc.org

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Washington Highlights, a weekly electronic newsletter, features brief updates on the latest legislative and regulatory activities affecting medical schools and teaching hospitals.


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For More Information

Jason Kleinman
Sr. Legislative Analyst, Govt. Relations
Telephone: 202-903-0806
Email: jkleinman@aamc.org