U.S. Sen. Kirsten Gillibrand is urging President Barack Obama to allow students to refinance their federal student loans.
The New York Democrat says Sunday there's about $1.2 trillion of student loan debt - and an average New York graduate owes more than $27,000. She says legislation that reduced student debt on federal loans would allow millions of borrowers the ability to refinance at a lower interest rate.
She says Obama should push for the legislation that would impact nearly nine in 10 federal student loans in his sixth State of the Union address Tuesday.
Gillibrand last May proposed legislation that would ease the burden for students who have borrowed to pay for their education.
Gillibrand says refinancing could boost the economy by freeing up disposable income.