The New York Democrat will announce Sunday morning new legislation that would allow student borrowers currently repaying their federal student loans to refinance at a lower interest rate.
The Federal Student Loan Refinancing Act would enable students and graduates who have an interest rate above 4 percent to refinance their federal loans at a lower fixed rate of 4 percent.
Gillibrand says a majority of federal student debt is set at an interest rate higher than 6 percent. The senator says the bill would lower rates for nearly nine in 10 federal student loans nationwide.
In New York, there are 2.7 million borrowers and 37 million nationwide.