U.S. Rep. Ron Kind (D-WI) introduced a comprehensive plan today to make college more affordable for middle-class families in Wisconsin and across the nation.
"Investing in higher education and helping more students afford college is one of the smartest decisions we can make as a nation. Every dollar we invest today will pay dividends down the road and help ensure that Wisconsin can compete in the global marketplace," said Rep. Kind. "As Governor Walker moves to defund the UW System, we need to take concrete steps now to make sure our colleges, students and their families have the support they need."
Rep. Kind's comprehensive strategy to help make college more affordable consists of five key principles:
Government Shouldn't Profit from Student Loans: Rep. Kind's PELL Grant Funding Act, to be introduced later this month, directs any profit the government makes from federal student loan programs into federal Pell Grant programs, making sure that Pell Grants remain sustainable and affordable for future students.
We Should Allow Student Loans to Be Refinanced Like Mortgages: Student borrowers saddled with decades of high interest loans and high monthly payments should be allowed to refinance their loans if interest rates drop.
We Must Invest in Tax Incentives to Address College Affordability: The American Opportunity Tax Credit, Tuition Deduction, Student Loan Interest Deduction, and improvement of college savings plans can all help students pay for school.
Loan Payments Should Match Earnings: Many borrowers struggle to make payments in the years after graduation -- we need a streamlined and dynamic repayment system that automatically adjusts to a borrower's ability to pay.
Provide Pell Grants Year-Round: Nearly 9 million students, of all ages, depend on Pell Grants. Restoring access to year-round Pell Grants would help students graduate early or on time by providing the flexibility they need.