UW-Madison students packed a Senate hearing Wednesday to support a bill that would allow them to refinance student loans at a lower interest rate.
The “Higher Ed, Lower Debt” bill, authored by state Sen. Dave Hansen, D-Green Bay, and state Rep. Cory Mason, D-Racine, would create a state agency charged with helping Wisconsin college students refinance their loans at the lowest possible interest rate. It would also give a tax break to students with loans and provide financial counseling for students.
The bill received a public hearing last session, but failed to pass the Republican controlled Legislature. UW-Madison sophomore Nehemiah Siyoum said student governing body the Associated Students of Madison joined with other student groups to push the bill toward passage.
“We formed this coalition because the reason the bill didn’t succeed last time is because there was a lack of student support,” Siyoum said. “The key factor this time is pressuring the administration and UW System to support this bill.”
Their voices were represented by the dozens of students who proceeded to testify about their experience with student debt, urging passage of the bill.
“Like many of my peers I have begun my job search with the understanding of my burden of student debt,” UW-Madison senior Lizzy Schounard said in her testimony. “This bill … may keep students like me living and working in this great state … it seems like a win-win.”
Hansen echoed these sentiments in his testimony, noting that total student debt in Wisconsin is over $19 billion.
“There are many people throughout this state struggling to pay this debt,” Hansen said. “They aren’t seeking to walk away from their obligation, they just want some help along the way, the same kind of help that those who refinance a mortgage or buy a home get.”
Representatives from the UW System took questions but declined to register a position on the matter.
“[UW System President] Ray Cross, the chancellors and the Board of Regents all share the concerns of student debt and are working with campuses to make sure costs stay affordable,” Jeff Buhrandt, UW System special assistant for state relations, said.
The committee has not scheduled a vote on the measure.
