May 06, 2014 10:27 AM EDT By Russell Westerholm, UniversityHerald Reporter

Sen. Elizabeth Warren (D-Mass.) wants Congress to take a serious look at helping student loan borrowers refinance their debt.

According to the Associated Press, Warren is planning to introduce a bill Tuesday that would allow borrowers to replace their loan interest rates with the ones currently offered. New undergraduate student loan borrowers can qualify for interest rates of 3.68 percent.

After keeping the interest rates of federal student loans static for several years, they will be tied to the market rates for the first time. Reps. George Miller (D-Calif.) and John Tierney (D-Mass.) are planning to file bills to accompany Warren's.

"This is an economic emergency, and we can't ignore it any longer," Warren said.

Warren's bill calls for higher taxes on wealthy Americans for funding. Led by President Obama, Democrats have been trying to help students manage their student loan debt while also trying to make college more affordable.

"When interest rates drop, people can refinance their home, they can refinance their business debt. It's regarded as a smart move for any consumer or business. But student borrowers are prohibited from doing that under most programs," Warren told MassLive.com. "This bill says we're going to change that and let them refinance that down to current low rates."

Warren has been an outspoken critic of Sallie Mae, the federal government's preferred student loan manager. She has also publicly called out Education Secretary Arne Duncan for renewing his department's lucrative contract with Sallie Mae despite the allegations against he lender.

Several states and government agencies are investigating complaints from borrowers who have accused Sallie Mae of intentionally incurring unnecessary payments and making it difficult to get into a favorable repayment plan.

"There are more than 40 million people currently dealing with student loan debt. When their interest rates are cut, many will save hundreds of dollars a month and many more will save thousands of dollars a month," Warren said. "That's money they can use to build an economic future and to strengthen the economy."

Student loan debt across the nation is estimated to total $1.2 trillion. The Government Accountability Office found in a report that the federal government would profit $66 billion off student loans between 2007 and 2012.

"This is $66 billion on just the loans issued during that period. That is insane," Warren told MassLive.com. "This (bill) brings that down. Instead of taxing students who can't afford to pay for college up front, it says we are investing in those students."

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