Amid record levels of student debt in Wisconsin, Gov. Scott Walker announced Tuesday alterations to UW Credit Union’s membership eligibility, with the intention of providing a greater level of access to loan refinancing opportunities for students of the state.
Walker announced the changes at a press conference in Madison and was joined by officials of both the credit union and the Department of Financial Institutions, the relevant state regulatory
Under the previous criteria, UW Credit Union membership was offered exclusively to students and alumni of the UW System. The alterations would now make all Wisconsin residents who currently or have attended an accredited institution of higher learning eligible for membership.
“We worked closely with the UW Credit Union to explore student loan refinance options, and by expanding membership eligibility, they’re making it easier for Wisconsin residents to pay off their student debt,” Walker said in a statement.
Walker also announced the launch of a new DFI website titled “Look Forward To Your Future,” with the goal of helping Wisconsinites more effectively plan ahead for the financial burden often coupled with higher education.
“We’re ensuring students and families are aware of higher education costs before they start college, so they are better able to plan for and manage student debt,” Walker said.
He touted the “private-sector solutions” put forth by the site, through the provision of information about banks that currently offer loan refinancing opportunities.
The announcement came after years of bitter fighting in the state Legislature on how best to combat the rising level of student debt in Wisconsin. State Rep. Katrina Shankland, D-Stevens Point, criticized the governor’s efforts, stating the plan is insufficient to combat the growing problem of student debt.
“After years of deep cuts to our public colleges and universities, and a failure to increase need-based financial aid for our UW System students, Governor Walker held a press conference this morning to announce what he will give to student loan borrowers in Wisconsin: a new website,” Shankland said in a statement. “This is hardly meaningful action on the $19 billion student loan debt crisis we have in Wisconsin.”
Democrats have proposed loan refinancing legislation of their own, which would allow borrowers to deduct student loan payments from their income taxes, enable refinancing at lower interest rates and provide loan counseling for students.
While Walker criticized the proposed legislation’s creation of “another layer of government,” UW Credit Union President and CEO Paul Kundert acknowledged that it would be
UW System spokesperson Stephanie Marquis said the system is committed to keeping college affordable and outlines initiatives in its strategic framework to address financial challenges for students.
"We will continue to assist our students through financial aid counseling and resources, but want to do more to help them graduate faster while maintaining the excellence our universities are known for," Marquis said.
