A state representative questioned a Democratic bill that would allow students to refinance their student loans Tuesday, accusing the two lead authors of misrepresenting the legislation’s potential benefits.
State Rep. Michael Schraa, R-Oshkosh, specifically cited a Milwaukee Journal Sentinel article in which the authors, state Rep. Cory Mason, D-Racine, and state Sen. Dave Hansen, D-Green Bay, promised students could refinance their loans down to 4 percent.
Schraa said the 4 percent loan rate would be impossible to achieve, because the agency established to give the loans would not require any collateral and would not back the loans with state funds. Loans without either type of backing generally have to be higher, approximately 6 or 7 percent according to Schraa’s office, to guard against students who do not pay their obligations back.
Jay Wadd, a spokesperson for Hansen, maintained the Democratic legislators were never set on the 4 percent number and plan to do their best to help Wisconsinites under the “terrific burden” of student debt.
