Sen. Elizabeth Warren (D-Mass.) promised yesterday to keep pushing for student loan legislation after a bill allowing borrowers to refinance their debts failed to come up for a vote this week, Collections & Credit Risk reported today. The Bank on Students Emergency Loan Refinancing Act was blocked when Sen. John Cornyn (R-Texas) sought an open amendment process — something Warren, the bill's author, did not want. The bill would allow more than 25 million people with federal and private student loans to refinance at current lower interest rates of less than 4 percent. Warren paid for the plan with the "Buffett Rule" — a minimum 30 percent income tax payment from people who earn between $1 million and $2 million. The cost of the bill would be paid for through tax increases to U.S. high-income earners, a non-starter for Republicans. The tax would offset the cost of lowering interest rates.
http://www.collectionscreditrisk.com/news/ccr_otherconsumer/warren-vows…
For more on student loans and financial distress, be sure to pick up a copy of Graduating with Debt: Student Loans under the Bankruptcy Code, available now in ABI’s Bookstore.
http://bookstore.abi.org/graduating-debt-student-loans-under-bankruptcy…