Play Live Radio
Next Up:
0:00
0:00
Available On Air Stations
Watch Live

Education

Bill Would Help Some California College Grads Refinance Loan Debt

The California Assembly chamber interior.
Andrew Nixon / Capital Public Radio
The California Assembly chamber interior.

California college graduates with privately held student loans could get help refinancing those loans from the state under a proposal that passed a Senate committee Wednesday.

Unlike other kinds of debt, like home loans and credit cards, college loans aren’t easy to refinance. Former Assembly Speaker John Pérez hopes his bill will solve that problem. It would allow grads who are considered “qualified borrowers” to refinance private student loan debt at lower interest rates.

Pérez said the program would create a “loan loss reserve fund,” paid for through the state budget, to reduce the risk for lenders to participate. “We think that with as little as $6 (million) to $10 million, you could create enough leverageable investment to significantly reduce the interest rates charged to students,” he said.

Advertisement

There’s no formal opposition to the bill. It passed the Assembly earlier this year and will likely come up on the Senate floor in August.

A big decision awaits some voters this July as the race for San Diego County’s Supervisor District 1 seat heats up. Are you ready to vote? Check out the KPBS Voter Hub to learn about the candidates, the key issues the board is facing and how you can make your voice heard.