U.S. Representative Tom Petri (R-WI), a senior member of the House Committee on Education and the Workforce, praised the legislation introduced today by U.S. Senators Mark Warner (D-VA) and Marco Rubio (R-FL) that would simplify and improve student loan repayment for millions of borrowers.
"I applaud my Senate colleagues for introducing this much-needed legislation," said Petri. "Millions of Americans default on their student loans unnecessarily each year because of the inflexible, bureaucratic repayment system that we have now.
"We need a streamlined, dynamic repayment system that automatically adapts to a borrower's ability to pay over time. These reforms will accomplish that goal. Last year, I introduced similar legislation with Congressman Jared Polis that would simplify student loan repayment for millions of young people, and I look forward to working with my colleagues in the Senate on this important issue."
The Warner-Rubio proposal, entitled, The Dynamic Student Loan Repayment Act, would consolidate current loan repayment options into one that automatically bases payment on income. Borrowers would be able to have payments automatically deducted from their paychecks, simplifying the process and resulting in significantly fewer defaults.
The legislation that Rep. Petri and Rep. Jared Polis (D-CO) introduced last year is H.R. 1716, the Earnings Contingent Education Loans (ExCEL) Act. Petri also wrote an op-ed with Senator Rubio in April on improving the student loan system, which includes moving to streamlining income-based repayment and making it automatic.