Student Loan Refinancing and Recalculation Act

The Student Loan Refinancing and Recalculation Act establishes a program allowing eligible borrowers to refinance existing Federal Direct and FFEL loans. Borrowers with loans first disbursed or applications received before July 1, 2024, can apply to have their loans reissued with a new interest rate calculated as the 10-year Treasury note yield plus 1 percent. The bill also eliminates origination fees for future Federal Direct Loans and prevents interest capitalization on certain loans, meaning borrowers won't pay interest on unpaid interest. This program aims to provide relief by potentially lowering interest rates while maintaining original repayment terms for eligible borrowers. The refinancing program will expire on a date determined by the bill's provisions.