The U.S. Senate is planning to debate a bill sponsored by Sen. Elizabeth Warren that would let college graduates refinance existing federal student loans.
The Massachusetts Democrat said the bill will ease the financial burden on graduates by letting them pay the same 3.86 percent interest rate now offered to new student borrowers.
Supporters of the legislation said recent grads can face interest rates of 12 percent or more.
The Democratic-led Senate is poised to debate and vote on the bill Wednesday.
To help pay for the changes, Warren's bill would phase in a new minimum tax in 2015 for individuals with adjusted gross income between $1 million and $2 million.
President Barack Obama has endorsed the bill.
Rep. John Tierney, a fellow Massachusetts Democrat, is sponsoring the bill in the Republican-led U.S. House.