Gillibrand Legislation Would Ease Student Debt in New York

New York College graduates are saddled with an estimated $60 billion in student loan debt and U.S. Senator Kirsten Gillibrand is continuing her push for legislation that would help tens of millions of graduates find some relief….

National student loan debt is now approximately $1.2 trillion dollars, surpassing auto loan and credit card debt, and New Yorker’s hold an average of more than $27,000 per graduate.

Senator Gillibrand’s legislation would reduce student debt on federal student loads by allowing millions of graduates and borrowers who are currently repaying their federal student loans the ability to refinance at a lower interest rate Gillabrand’s proposal was included in the Bank on Students Emergency Loan Refinancing Act legislation introduced by Senator Elizabeth Warren last week.

Senator Gillibrand says, “The high amount of student debt is dragging down our economy, stopping graduates from buying homes and cars, or starting businesses and families. She says, Graduates should be able to refinance their debt in the same way that businesses and homeowners do.

According to the Federal Reserve Bank of New York, Graduates are facing a tougher time repaying their college loans as student debt nearly tripled since 2004, with New York graduates facing an average debt of $27,310 in 2012,. Over the past several years, more young borrowers have fallen further behind on their student loan payments.

Nationwide, almost 12 percent of all student debt was delinquent by the end of last year, up from 7.6 percent in 2008, according to the Federal Reserve Bank of New York. Statewide, nearly 11 percent of New York graduates, or 24,800 borrowers, defaulted on their student loans between 2009 and 2012, or were more than nine months behind on their payments, per the Department of Education..