WASHINGTON, D.C. (WSAU) — A Wisconsin Congressman is pushing for federal legislation that he says would help reduce student debt. 3rd District Representative Ron Kind tried before, but says he will be reintroducing his student debt bill, to help consolidate loans and refinance debt at lower rates, just like homeowners are allowed to do. “It would prohibit the federal government from raising money off the interest that is collected from the students, and we would peg the repayment rate on the student loans to the student’s income level, so as their income goes up, they could pay more. If it happens to decline for some reason, they could pay less.”
Kind says his proposal would help keep student loan payments affordable and keep more students out of default and personal bankruptcy. “Let’s charge our students the same interest rates that the big bank on Wall Street are allowed to borrow money on, which is at rock-bottom rates. I think if it’s good enough for the Wall Street banks, it should be good enough for our students throughout the country to ease the financial burden to afford school.”
Kind also commented Friday on President Barack Obama’s proposal to make the first two years of community college free for those willing to work for it. He likes the concept of students being able to save approximately $3,800 dollars in tuition, but is, “looking forward to seeing the details of the proposal and how it could benefit our community colleges, students, and their families.” Kind believes this could be funded by further reining in of health care costs and cutting unnecessary defense projects from the budget.