U.S. Rep. Ron Kind, D-Wis., announced Thursday his plan to reduce student loan debt at a press conference at the University of Wisconsin-Eau Claire.
The outline calls for congressional approval of five separate pieces of legislation introduced by Kind and other representatives. Kind said in a statement the legislation would solve a growing economic problem in the U.S.
“Wisconsin students graduate from college and enter the job market with over $28,000 in debt on average, creating a huge financial strain that can last for years,” Kind said in the statement. “More than ever, we have an immediate need to reform student loan repayment programs so that students aren’t punished for seeking higher education.”
Kind said in the plan he introduced a bill to direct federal profits from student loan programs into Pell Grant programs, adding that the federal government should not profit from student loan debt.
The plan includes legislation sponsored by U.S. Rep. Mark Pocan, D-Wis., that would allow students to refinance loans for higher education when interest rates drop, similar to the framework allowing homeowners to refinance mortgages.
Kind’s plan supports the Investing in Student Success Act recently introduced by U.S. Reps. Tom Petri, R-Wis., and Marco Rubio, R-Fla., which would allow individuals or organizations to provide funds for students’ education and be repaid with a percentage of the students’ income for a predetermined amount of time.
In addition, the plan includes measures to reduce interest rates for student loans and increase the minimum tax deduction for student loan interest for low and middle-income families.
