Student Loan Refinancing Act of 2026
Sponsored By: Representative Turner, Michael R. [R-OH-10]
Introduced
Summary
A federal refinancing program for federal student loans. This bill would create a new refinancing channel that lets eligible borrowers convert Federal Direct and Federal Family Education Loan program loans into fixed‑rate Direct loans with interest rates tied to the original loan type.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 0 costs, 2 mixed.
Federal student loan refinancing program
If enacted, the bill would require the Secretary to set up a federal refinancing program within 30 days. You would be able to apply to refinance a Federal student loan into a new Direct loan equal to your unpaid principal plus accrued unpaid interest and late charges. For loans originally under part B, the government would pay the old lender to discharge your obligation. The refinanced loan would not have an origination fee and would not count toward prior annual, aggregate, or lifetime loan limits.
Interest rules for refinanced student loans
If enacted, the bill would set the interest rate on a refinanced loan to the rate that applies to the corresponding Direct loan on the date the new loan is made. That rate would be fixed for the life of the refinanced loan. For consolidation refinancings, the rate would be a weighted average of each component loan's applicable rate, using each component's share of unpaid principal. For each component, the applied rate would generally be the lower of the recalculated rate on the consolidation date or the component's original interest rate.
Protections and limits when you refinance
If enacted, the bill would treat a refinanced loan as if it was made on the original loan date. That would preserve any CARES Act payment or interest suspensions tied to the original loan date. The bill would allow qualifying payments on original and refinanced loans to count together for Income-Based Repayment and, in specific cases, for Income-Contingent Repayment (if refinanced before July 1, 2028) and for Public Service Loan Forgiveness in limited ways tied to loan type. Refinancing would not automatically extend your repayment term; you would keep the plan and term you had the day before refinancing. The bill would also limit refinancings so no loan can be refinanced more than twice in any 10-year period. The Secretary and the CFPB would run an outreach campaign and require servicers to provide consumer materials about refinancing.
Sponsors & CoSponsors
Sponsor
Turner, Michael R. [R-OH-10]
OH • R
Cosponsors
Rep. Norcross, Donald [D-NJ-1]
NJ • D
Sponsored 6/4/2026
Rep. Fitzpatrick, Brian K. [R-PA-1]
PA • R
Sponsored 6/4/2026
Rep. Doggett, Lloyd [D-TX-37]
TX • D
Sponsored 6/4/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov