Sec. 2. Findings and purpose
182 words·~1 min read·
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Congress finds that— there is approximately $1,100,000,000,000 of outstanding student loan debt in the United States, including more than $150,000,000,000 in private education loans; as of 2008, 81 percent of individuals graduating with an undergraduate degree with more than $40,000 in student loans had a private education loan; the limited number of lenders in the private education loan marketplace reduce the ability of borrowers with private education loans to restructure, refinance, or negotiate repayment terms for their current loans, leading to excessive debt burdens and potential default; and excessive student indebtedness reduces economic activity, threatens homeownership, hurts small business growth, and limits opportunities for economic expansion in rural communities.
The purpose of this Act is to spur economic growth, by establishing a mechanism to allow borrowers of private education loans to refinance their loans in order— to facilitate greater competition in the private education lending and refinancing markets; to address inefficiencies in the private education lending and refinancing markets; to encourage innovation in the private education refinancing markets; and to promote the participation of private capital in the private education refinancing markets.