Student Loan Refinancing Act of 2026

The Student Loan Refinancing Act of 2026 establishes a new program allowing borrowers to refinance existing Federal Direct and FFEL Program loans into new Federal Direct loans with fixed interest rates. The bill requires the Secretary of Education to offer these refinanced loans at interest rates equal to the current rates for new loans of the same type, while protecting borrowers from origination fees and ensuring the total repayment period does not increase. To facilitate this process, the legislation mandates a public awareness campaign and includes specific rules that allow payments made on the original loans to count toward income-driven repayment plans and public service loan forgiveness. Additionally, the act limits borrowers to refinancing their loans no more than twice within a ten-year period to prevent repeated refinancing.