Washington, D.C. - August 3, 2017 (The Ponder News) -- U.S. Rep. Kathy Castor (FL14) filed the Student Loan Relief Act (H.R. 3390) to tackle America’s rising student debt, give working families a more affordable path for college and spur economic activity. U.S. Rep. Castor is offering the bill as the U.S. House version of the legislation filed by U.S. Sen. Bill Nelson.
The Student Loan Relief Act will lower the cap on federal student loan interest to 4 percent for undergraduate students, 5 percent for graduate students and 6 percent for parents. It would change the way student loan interest rates are calculated, allow borrowers with loans disbursed before the effective date to refinance their loans at the new rates and eliminate loan origination fees. U.S. Sen. Nelson unveiled the Senate version earlier this month.
“A college or graduate degree is an important pathway to higher wages, better jobs and a better future, but can be very expensive for working families,” U.S. Rep. Castor said. “Today’s students are facing more debt than ever before and even though unemployment is down, higher wages lag. Student loan debt is growing at faster rates than all other household debt, including 42.3 million borrowers topping $1.3 trillion in federal student loan debt. College graduates in Florida face an average of $25,000 in debt when they graduate.
“Student loans have a chokehold on families legitimately trying to move forward and help their children have a better life than their parents and attain the American Dream. The crushing burden of student loan debt also hurts our economy because such debt forces young Americans to delay major life investments. Instead of buying a home, starting a business or saving for retirement, these educated and talented graduates are being forced to start their lives in the red. A recent survey found that 71 percent of student loan borrowers stated that their crushing debt has delayed their home ownership, prohibiting them from saving for down payments or making them feel too financially insecure to buy a home. Constraining young adults from investing in their future deprives our community and economy of the benefits of their hard work and ingenuity.”
The Democratic-led Congress from 2007-2010 took meaningful steps to help college students, including passing the American Opportunity Tax Credit, which boosted the maximum amount for Pell Grants and created an income-based repayment program. But with states, like Florida, contributing less money for public education and tuition prices increasing much faster than the rate of inflation, students are borrowing more to pay for college. While the Republican-controlled Congress has done little to make this a priority and has not brought any major legislation to the floor for a vote to help students and graduates – such as reducing interest rates or restructuring loan repayment plans – U.S. Rep. Castor has filed or cosponsored numerous bills over the past several years to address student loan debt and has been joined by Tampa Bay’s student leaders to bring attention to this important issue.
“U.S. Sen. Nelson and I are fighting to give students and their families a better deal. Student loan debt is holding back today’s students and young people and their hopes for career success and good-paying jobs. For our country and all of us to prosper we must ensure that higher education is not just a luxury for the few, but an opportunity for all,” said U.S. Rep. Castor. “As students begin preparing for school this fall, we should work to ensure pathways to an affordable education for them. This will spur job growth, strengthen our economy and guarantee a bright and boundless future for our country.”
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