WASHINGTON, DC – Congressman John Garamendi (D-Fairfield, Davis, Yuba City, CA), a former California State University Trustee and University of California Regent, is honored that his Student Loan Refinancing and Recalculating Act has been unanimously endorsed by the California State Student Association (CSSA).

The CSSA represents more than 446,000 students in the California State University (CSU) system.

“While federal student loans are one of many tools that students can use to access college, high interest rates have made them increasingly difficult to pay back,” said Taylor Herren, president of the California State Student Association. “It’s fair to ask borrowers to pay back their loan plus the amount to cover administrative costs; however, interest rates higher than that mean borrowers spend longer in repayment and end up delaying significant purchases, such as a house, or wait longer to start a family, ultimately slowing the nation’s economy. We are grateful that Congressman Garamendi recognizes the damage high interest rates have and is pursuing legislation to treat borrowers more fairly.”

“Undergraduate students in the CSU system graduate with an average student loan debt of nearly $16,000. It’s a sign of just how out of control college debt has gotten that this is actually well below the national average. We must do better for our students,” Congressman Garamendi said. “I’m honored that CSU students are joining me in this movement to reform our student loan system. My Student Loan Refinancing and Recalculating Act is part of the solution to making sure that every qualified student in America is able to pursue their dreams.”

Congressman Garamendi introduced the Student Loan Refinancing and Recalculating Act on the UC Davis campus last week.

Since it was introduced, it has already been cosponsored by 24 members of Congress. It is also endorsed by the Higher Education Loan Coalition, a grassroots alliance of schools dedicated to the continuous improvement and strengthening of the federal Direct Loan program.

The legislation refinances student loan interest rates to the current 10 year Treasury note rate, plus 1 percent. This means that current interest rates (4.29 percent for undergraduate borrowers, 5.84 percent for graduate borrowers, and 6.84 percent for parent and graduate PLUS loan borrowers) would all be lowered to 3.23 percent.

In practical terms, this means an undergraduate student with average student loan debt ($35,051) would save $2,760 over the lifetime of their loan; a graduate student with average student loan debt ($57,600) would save $3,480 over the lifetime of their loan.

The bill also ensures that borrowers with an expected family contribution of less than, or equal to, $10,000 will not accrue interest on their student loans while they are in school.

While lieutenant governor, serving as a University of California Regent and California State University trustee, Garamendi voted against every undergraduate tuition increase.