COLLEGE SAVINGS: Students could swap private loans for federal ones

Under the College Debt Swap Act, individuals with private student loans would have the option to trade in those loans for federal student loans as long as they haven’t used up the entire amount of federal student loan funding allowed. The goal of the legislation (HR 2410) introduced by Rep. Edolphus Towns, D-N.Y., is to give students access to government loans that are more flexible and cheaper than private loans. The measure would have the federal government pay to the educational institution the amount borrowed by the private lender, and the students then pay back the government under better terms. The bill was referred to the House Education and Workforce Committee.