(Madison)—State Representative Robb Kahl (D-Monona) is joining with Senator Dave Hansen (D-Green Bay) and State Representative Cory Mason (D-Racine) in introducing  the “Higher Ed, Lower Debt” Act. The legislation would provide relief to over 753,000 Wisconsin residents with an average student loan debt of $22,400.

“My support for this legislation isn’t based on second hand reports or anecdotes I have heard in my capacity as a legislator,” Kahl stated.   “I am a citizen legislator working outside of the Capitol.   As the owner of a title company, I see how student loan debt is creating roadblocks for individuals who want to own their own homes.  This problem is very real.”

The legislation has four main components: it provides more information for borrowers about their rights and responsibilities, improves tracking of student loan debt information, allows borrowers to refinance their loans at lower interest rates, and creates a state tax deduction for payments on student loans.

“Given increased costs and decline in public support, the reality is that many students not only have to make use of student loans, but they have to borrow more in order to pay for their education,” Kahl stated.   “When these students take out these loans they are not only investing in their own education and the economic well-being of their families, but they are investing in the future of our state and country by ensuring we have an educated workforce necessary to maintain our position as an economic leader.   Enabling them to refinance their student loans just like others can refinance their home loans would have a tremendous positive impact on their personal finances and on our economy.”

Nationwide, the amount of student loan debt has surpassed one trillion dollars. This debt has a rippling effect throughout the economy, as it dampens home and new car purchases, slows small business startups and diverts retirement savings.

“I am hopeful that this bill will receive bi-partisan support and move through the legislative process.  Passage would provide our state economy with a strong shot in the arm and move our state significantly closer to achieving the goal of achieving significant job growth,” Kahl concluded.   “I would like nothing better than to be able to tell graduates drowning in debt that relief is on the way and that dreams like getting married, buying a home, having children or simply buying a new car no longer need be delayed.”

###