Two state legislators unveiled a bill Wednesday that aims to lower the interest rates Wisconsin students have to pay on their higher education student loans.
The bill, referred to as “Higher Ed, Lower Debt” Act, contains four main components, including allowing borrowers to refinance their loans at lower interest rates and creating a state tax deduction for payments on student loans. It would also provide more information for borrowers about their rights and responsibilities, and would improve the tracking of student loan debt information, according to a Wednesday press release.
State Sen. Dave Hansen, D-Green Bay, and state Rep. Cory Mason, D-Racine, introduced the bill after reading recent studies that said there are 753,000 Wisconsin residents with an average student loan debt of $22,400. The legislators also said they believe the bill represents a “common sense solution” for Wisconsin’s student loan borrowers.
“Not only does this bill provide numerous consumer protections for student loan borrowers, it will provide meaningful tax relief for Wisconsin’s residents,” Mason said in a statement. “Under this legislation, the typical Wisconsin student loan borrower will see $172 in tax savings, and those residents with higher student loan payments will see as much as $392 in annual tax savings.”
Hansen agreed, saying the bill would also strengthen the state economy.
“By allowing borrowers to refinance their student loans at lower interest rates … we will see more investments in new cars, homes and local businesses,” Hansen said in a statement. “It’s a win-win.”
The bill is currently circulating for co-sponsorship and is set to be officially introduced in the state Legislature later this month, according to Mason’s statement.
