Pictured: AAO President Dr. Nahid Maleki with Rep. John Garamendi (D-CA)
On Tuesday, October 10th, Rep. John Garamendi (D-CA) and Brian Fitzpatrick (R-PA) introduced the Student Loan Refinancing and Recalculation Act (H.R. 4001) to the 115th Congress. The American Association of Orthodontists recently spearheaded efforts to encourage the introduction of this legislation, involving 14 other dental groups.
If Congress votes to pass the Student Loan Refinancing and Recalculation Act, it would provide parity in the ability to refinance student loans and would ensure that the federal government does not profit from student borrowers.
“Orthodontists now graduate with an average of $365,000 in student loans. The AAO supports this legislation because it focuses on reducing the enormous debt load our residents and graduates currently face,” says Dr. Nahid Maleki, President of the American Association of Orthodontists. “Reducing interest rates and fees and allowing refinancing for today’s graduates are critical steps to helping them repay these loans sooner and more efficiently so they can begin to invest in their futures and careers.”
Key features of the Student Loan Refinancing and Recalculation Act include:
- Allowing borrowers to refinance their student loan interest rates to the 10-year Treasury note rate, plus one percent, throughout the lifetime of the loan.
- Eliminating origination fees and instead setting future student loan interest rates at the 10-year Treasury note rate, plus one percent.
- Delaying student loan interest rate accrual for many low- and middle-income borrowers while they are in school.
- Allowing borrowers in medical or dental residencies to defer payments until the completion of their programs.