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It isn’t just the government who does lose cash. Warren’s refinancing expenses create offer to personal figuratively speaking too. The federal government carry out buy people loans, and you may students would make repayments at the a diminished rates for the authorities instead. Because personal education loan interest levels are generally higher than federal financing interest rates, this will be a lot to possess consumers, but inaddition it ensures that banking companies has actually good reason in order to oppose the size.

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