Wisconsin Senator Tammy Baldwin introduced a bill Tuesday in an attempt to make college more affordable and to help graduates pay off their student loans.
The first of the three proposals in the so-called “Reducing Educational Debt Act,” commonly known as the “In the Red” act, “will allow student loan borrowers to refinance their outstanding student debt at lower interest rates,” according to a release announcing the legislation.
Proponents say it could save student loan borrowers potentially millions of dollars in interest.
The second part of the act relates to indexing the Pell Grant to avoid inflation as a way to provide money for low-income students pursuing a college education.
The third component incorporates a previous bill introduced by Baldwin to make the first two years of community college tuition-free. It is estimated that, if the act passes and every state participates, it would benefit more than 9 million students.
“[Student debt] is crushing the dreams of young people and it is crushing their ability to build a future that has some real economic security,” co-sponsor U.S. Sen. Elizabeth Warren, D-Mass., said in a release.
Although Republican support is unclear, the dozen-plus Democratic co-sponsors of the bill claim they will continue to support it as a way to help college students nationwide.
