Student Loan Refinancing Act of 2026

Key Points

• The bill creates a new federal program letting borrowers refinance their existing federal student loans to get today's lower interest rates. The program must launch within 30 days of the bill becoming law.
• The program covers nearly every type of federal student loan, including Direct Stafford Loans, Unsubsidized Stafford Loans, PLUS Loans, Consolidation Loans, and older FFEL program loans. This means both current and older borrowers can benefit.
• Borrowers will not be charged origination fees for refinanced loans, and the new loan amount is not subject to any annual or lifetime loan limits. Each loan can be refinanced up to twice in a 10-year period.
• Refinancing does not extend the repayment period or reset the clock. Borrowers keep their existing repayment term and plan, though they can switch plans if they choose.
• For borrowers working toward Public Service Loan Forgiveness or income-based repayment forgiveness, payments made on the original loan still count toward forgiveness after refinancing. This protects their progress toward debt cancellation.
• The government must run a campaign with the Consumer Financial Protection Bureau to tell eligible borrowers about the refinancing option. Loan servicers will be required to share this information with borrowers.