Rep. Ron Kind Calls for Congressional Action on Five-Point Student Loan Debt Plan

Commends President for Prioritizing Student Loan Debt Crisis

WASHINGTON, DC – U.S. Rep. Ron Kind (D-WI) commended President Obama today, after the President announced steps his administration will take to address student loan debt by capping monthly payments for federal student loans. Congressman Kind has been fighting for congressional action on his Student Loan Debt Action Plan, aimed at making college more affordable for student loan borrowers and their families.

“Student loan debt in America is at a crisis point, and I commend the President for doing what he can to fix this problem. At more than $1 trillion nationally, student loan debt is higher than credit card debt and second only to mortgage debt,” said Rep. Kind. “College grads in Wisconsin enter the job market with over $28,000 in debt on average, creating a huge financial strain that can last for years. More than ever, we have an immediate need to reform student loan repayment programs so that students aren’t punished for pursuing higher education.”

Rep. Kind recently introduced a detailed, comprehensive strategy to address the student loan debt crisis, consisting of five measures helping middle-class families afford college:

·Steer any profits generated by federal student loan programs back into Pell Grant programs, ensuring that the federal government isn’t making a profit from students.

·Allow people to refinance their student loans whenever borrowing rates are reduced (much like homeowners are able to refinance their mortgages), as proposed in a bill authored by Rep. Mark Pocan (D-WI) that would help 40 million Americans pay off their debt.

·Increase the maximum tax deduction allowed for student loan interest from $2,500 to $5,000 for individuals and $10,000 for married couples filing jointly.

·Match loan payments to a borrower’s earnings, as proposed in a bill introduced by Rep. Tom Petri (R-WI) that would withhold student loan payments from paychecks, and then adjust the loan payments based on the borrower’s earnings.

·Ensure that interest rates on student loans match the same interest rates that the big banks on Wall Street receive from the Federal Reserve.

To read the full Student Loan Debt Action Plan, click here.