“What the Act does it allows borrowers without creating student loan debt to refinance their current debt that is available for the school year,” Peters said. “Some people have rates around seven percent, so they’ll be able to refinance at a lower 3.86 percent.”

According to The Institute for College Access and Success, 63 percent of college students in Michigan borrow money from the federal government.

The Bank on Students Emergency Loan Refinancing Act, however, will only apply to certain federal student loans.

According to the Act, the loans eligible to be refinanced are the Federal Direct Stafford Loan, Federal Direct Unsubsidized Stafford Loan, Federal Direct Plus Loan and the Federal Direct Consolidation Loan.

“(The Act) allows folks to save some money on student loans, that put some money on their pockets, which is good for them, for the family,” Peters said. “(It is) also good for the economy because if they are not paying higher interest of student debt they are probably spending it on other things important to their families, which is good for the Michigan economy.”

The bill was introduced and on March 18 was referred to the Committee on Finance.

“The idea is that everybody, no matter who you are, should be able to afford college if you are able to work hard and have the talent necessary,” Peters said. “But for those students who take out loans, they should be able to take advantage of the low interest rates that are available right now.”