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This remedy entails enabling federal student loan borrowers to get a reduced interest price for the duration of their repayment term. This notion comes from the mortgage industry, exactly where refinancing generally pairs a lower interest rate with a longer repayment term. Refinancing proposals for larger education, on the other hand, typically do not include a term extension. This proposal would be most successful when paired with reduced caps on interest prices for all future federal student loan borrowers. As policymakers consider about solving college affordability for future students, they must not forget about the tens of millions of borrowers already holding college debt.
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