Sens. Push Banks To Refinance Private Student Loans

Law360, Washington (June 25, 2013, 2:06 PM EDT) -- Four Democrat senators introduced a bill Tuesday that would push large banks to allow borrowers to refinance their student loans and urged financial regulators to ensure the banks wouldn't face penalties for the loan restructuring, as student loan debt has soared to $1 trillion in the U.S.

Although student loan debt has become the second largest source of consumer debt, banks are reluctant to refinance or modify their more costly private loans, Sen. Sherrod Brown, D-Ohio, said during a Senate Banking, Housing and Urban Affairs Committee...
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