Student-loan rates set by Congress more than a decade ago can run more than 7%, prompting some lawmakers and private lenders to explore ways to give borrowers some repayment and refinancing choices. PK Parekh, vice president of Discover Student Loans, says private lenders have less flexibility because of accounting regulations that make lenders write down modified loans. CBA submitted a letter to regulators last week seeking "greater flexibility" over what options lenders have before they must write the loans off.

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