U.S. Rep. Kathy Castor is hoping to do something about the rising crisis of student loan debt.
On Wednesday, the Tampa Democrat introduced the “Student Loan Relief Act,” legislation to lower the cap on federal student loan interest to 4 percent for undergraduate students, 5 percent for graduate students and 6 percent for parents.
The measure would also change the way student loan interest rates are calculated, allowing borrowers with loans disbursed before the effective date to refinance their loans at the new rates and eliminate loan origination fees.
“Student loans have a chokehold on families legitimately trying to move forward and help their children have a better life than their parents and attain the American Dream,” Castor said. “The crushing burden of student loan debt also hurts our economy because such debt forces young Americans to delay major life investments. Instead of buying a home, starting a business or saving for retirement, these educated and talented graduates are being forced to start their lives in the red.”
More than half of 2015 graduates from colleges or universities in Florida have student debt, with an average of $23,379, according to the Institute for College Access & Success.
As of 2015, more than 42 million student loan borrowers hold student loan debt of $100,000 or less, according to the NY Federal Reserve. More than 2 million student loan borrowers had student loan debt greater than $100,000, with 415,000 of that total holding student loan debt greater than $200,000. The largest concentration of student loan debt is $10,000 – $25,000, which accounts for 12.4 million student loan borrowers.
Florida Democrat Bill Nelson has introduced a similar proposal in the U.S. Senate.
A news release from Castor’s office listed five specific proposals she has co-sponsored over the past few years that deals with student loan debt relief; she pointedly noted a lack of reciprocation by Republicans.
“As students begin preparing for school this fall, we should work to ensure pathways to an affordable education for them,” Castor said. “This will spur job growth, strengthen our economy and guarantee a bright and boundless future for our country.”
