ALBANY, N.Y. -- Senator Kirsten Gillibrand is pushing for student loan relief in Schenectady.
She is calling for legislation to allow graduates to refinance their federal loans at lower interest rates.
According to the New York Federal Reserve, outside of mortgages, student loan debt is currently the largest form of consumer debt. Currently, New York graduates are saddled with more than $60 billion in student loan debt, leaving each student owing an average of more than $27,000. The national student loan debt total is $1.2 trillion.
The federal government makes 36 cents on the dollar on every student-loan dollar it puts out, according to a Congressional Budget Office report. However, the Center for American Progress found refinancing would increase disposable income nationwide by an estimated $14.5 billion in the first year alone.
Senator Gillibrand's Federal Student Loan Refinancing Act would enable anyone who has an interest rate above four percent to refinance their federal loans at a lower, fixed rate of four percent.
Gillibrand was to speak at Schenectady County Public Library in Schenectady on Tuesday at 12:30 p.m., but the event was canceled due to weather.