NEW YORK (CBSNewYork) – With student loan debt continuing to balloon, New York Sen. Kirsten Gillibrand has launched an effort to allow recent college graduates to refinance their loans.

As WCBS 880’s Monica Miller reported, many college-bound students are about to take on tens of thousands of dollars in debt to pay their tuition.

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“Most student loans are federal loans and so I have a bill to say if you have a federal loan, you can refinance at the going rate,” said Gillibrand. “It’s absurd that you can refinance your mortgage or your business loan but not your student loan. So our bill says anyone who has a federal loan can refinance at 4 percent right away.”

Student loan debt has surpassed the $1 trillion mark nationwide, surpassing credit card and auto loan debt.

The average student loan debt of graduates in New York was $27,310 in 2012, according to the Federal Reserve Bank of New York.

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“Our student debt is held by people in their 20s and 30s and because of their debt, they’re delaying homes, they’re delaying purchases of homes, they’re delaying starting businesses, they’re delaying starting families,” said Gillibrand.

The Democrat is looking for co-sponsors in the Senate.

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