Congressman Joe Garcia Introduces Student Loan Bill To Help College Affordability

WASHINGTON, DC – Yesterday [September 18, 2014], Congressman Joe Garcia introduced the Fairness in Student Loan Repayment Act to provide assistance to students repaying their federal student loans. Congressman Garcia, a strong proponent of college affordability, introduced this legislation as a way of helping students repay their debt with minimal struggle.  Students around the country take on thousands of dollars of student debt in an effort to acquire a quality higher education, spending decades paying off those loans. Last year, 71%  of college students who graduated had student loan debt, with an average of $ 29,400 per borrower.

“In this day in age, where college education is becoming an increasingly important requirement to find decent employment, students are taking on an extraordinary amount of debt” said Garcia. “By granting more benefits to students who are repaying their loans, this bill will allow them the ability to focus on their future instead of figuring out this otherwise cumbersome repayment process. We should be supporting students and encouraging them to enhance their education, not penalizing them for attempting to make progress in their lives.”

Over the years, a college degree and even a Masters or higher, has becoming increasingly more important in securing decent employment. As of today, total student debt nationally is over $1 Trillion Dollars. As it currently stands, certain repayment benefits are offered only to borrowers with Direct Loans. These benefits to help students pay off their debt include –

Income-based and income-contingent repayment schedules

Participation in the Public Service Loan Forgiveness Program, which supports those who work for non-profits and government entities

Interest non-accrual benefits applicable to active-duty personnel

Eligible borrowers of some loans cannot access these benefits unless they proactively convert their existing loans into Direct Loans through the cumbersome and time-consuming consolidation process. Garcia’s bill would provide holders of certain loans with access to the same benefits as Direct Loan holders. In order to obtain repayment benefits uniquely available in Direct Lending, borrowers must go through the complicated process of first understanding the unique repayments benefits allowed only for Direct Loans, learn clearly the details of their loans, and finally initiate and complete the complicated consolidation process.

“This new legislation provides a solution to this otherwise confusing system by granting borrowers the benefits they need to escape the burdens of student debt” said Garcia.  “Making collage affordable needs to be a top concern, and I am committed to making this a priority.”

In 2013, Congressman Garcia co-sponsored the Student Loan Relief Act in order to keep student loan rates at 3.4% for the over 7 million students that rely on Federal Stafford Loans. This bi-partisan bill passed with overwhelming support in the House.