Durbin Pushes Legislation For Refinancing Student Loans

(CBS) -- Senator Dick Durbin says students with loans should get the same break as homeowners with mortgages and be allowed to refinance down, reports WBBM's John Cody.

Senator Durbin says some loans are so harsh they follow the student through bankruptcy and even through death, where they become the burden for parents or other co-signers.

"Some of these loans prohibit refinancing. They won't allow you to consolidate, particularly in the private loan category," said Durbin.

Speaking at Loyola University's Lewis Towers, Durbin called on senate colleagues to hear their constituents and approve the Loan Refinance Act, which would boost the income tax on those earning over a million dollars a year while letting students to refinance at lower interest rates currently offered to new borrowers.