The 2018 Washington State Legislature directed WSIPP to conduct a study on student loan authorities that refinance existing federal and private undergraduate and graduate student loans from the proceeds of tax-exempt bonds. WSIPP’s study will summarize guidance on the subject issued by the United States Treasury; consider the structures and characteristics of state-operated loan refinance programs in other states, including borrower requirements; and review the available literature on the impacts of borrow requirements of similar programs. WSIPP was also directed to estimate potential savings and costs to undergraduate and graduate borrowers from differences in interest rates of loans refinanced by the state as compared to similarly situated borrowers of federal direct loans and private loans; and consider the value of various repayment and forgiveness options that may be lost to borrowers of federal student education loans who choose to refinance.
The report is due to the legislature by December 31, 2018.
Madeline Barch, (360) 664-9070