Politic365

 
 


Policy

2:30pm June 5, 2014

Student loans are back on the policy agenda

11696993404_4fc1391647_b

With graduation season winding down, there is a renewed emphasis on student loans as graduates gear up to start paying back their debt.

New York Senator Kirsten Gillibrand (D) introduced legislation that would allow students to refinance their student loan debt. This bill was introduced back in May, but it would allow for the refinancing of undergraduate loans at 3.86 percent and graduate loans at 5.14 percent.

Another bill introduced by North Carolina Senator Kay Hagan (D) would help veterans with their student loans by lowering their interest rates and provide extra support to veterans.

According to the Fayetteville Observer:

“Hagan said her bill would simplify the process for troops to lower their interest rates and would extend those interest rate protections to one year after active duty to allow veterans time to find jobs.

It also would require the Department of Defense, the VA and the Department of Education to work together to automatically discharge loans for veterans who are found to be 100 percent disabled, and would require the Department of Education and the IRS to work together to ensure that troops in combat do not accrue interest on their loans while deployed.

Deployed troops already are protected from interest accruing, Hagan said, but few receive the benefit.

Since 2008, when the benefit was first signed into law, it has been used only 633 times, Hagan said.

The bill also would extend some protections to military spouses, creating a deferment program that would allow spouses 180 days to find a job and get settled following permanent change of station moves.

The legislation would direct the secretary of education to create a single enrollment form for service members to invoke existing military-specific protections, cutting down on paperwork and bureaucratic red tape, Hagan said, while also establishing clear definitions for military terms as they relate to student loan programs.

It also would require the Department of Education to incorporate the military and veteran status of borrowers into the National Student Loan Data System and would create a cross-agency working group to ensure veterans have the best resources and tools to help decide on a school.”

This comes at a time when more people are making the connection between student loan debt and the housing recovery. According to a recent report, 2012 was the first year where student loan borrowers had lower home ownership rates than young people who did not have student loan debt. It’s being reported that President Obama will soon unveil plans to deal with student loan debt.

 

Photo Credit: Lendingmemo.com via Flickr



About the Author

Adriana Maestas
Adriana Maestas is the senior contributing editor of Politic365.com. The ideas and opinions expressed in this article are solely those of the author, and have complete editorial independence from any Politic365 partners, sponsors, or advertisers. For additional information about Politic365, please visit http://politic365.com/about/.




 
 

 
g-k-butterfield

Butterfield: Politically Driven Open Internet Debate Should Not Slow Sound Broadband Policy

Hailing from Wilson, North Carolina, Congressional Black Caucus Chairman Congressman G.K. Butterfield understands well the challenges facing many Americans today. Comprised of roughly three-quarters of a million people, 53% of ...
by Kristal High
1

 
 
aaron1

Kardashian Congressman Aaron Schock is GOP’s Welfare Queen

Could Anyone Be This Stupid? The Answer is YES.  American taxpayers funded $79,000 in furniture and $29,000 on a photographer over four months for soon-to-be-funded Rep. Aaron Schock (D-IL).  This is the same Rep. Schock who ...
by Lauren Victoria Burke
1

 
 
6236984564_639ea5c68a_b

Canadian born Ted Cruz to enter GOP race for president, let the birther stories begin

On Sunday, it was announced that Texas Senator Ted Cruz will launch his presidential campaign on Monday at Liberty University in Virginia. While Jeb Bush is “exploring” a run for president, Ted Cruz would be the fir...
by Adriana Maestas
5

 

Advertisement
 
206911985_c0f565df12_o

#RaceTogether: conversations about race deserve more time than it takes to make your latte

On Tuesday, Twitter was abuzz with the news that Starbucks was encouraging its baristas to have conversations with customers about race in America in its “Race Together” campaign. What may have started out as a well...
by Adriana Maestas
2

 
 
unnamed

Lorretta Johnson: Breaking Barriers and Uniting Educators

For the last 50 years, Lorretta Johnson has advocated for educators across the country. Her journey has taken her to the poorest neighborhoods in the United States, to the Rose Garden of the White House, and all around the worl...
by Sam P.K. Collins
2

 




2 Comments


  1. J. Russell

    The President appealing to Republican’s about education? This crowd wants to abolish the Dept. of Education, don’t believe in science, think common core is a conspiracy, have under funded U S Research and development for years, (which kept us #1 in world innovations for decades) is he nuts? They’re going to tell him, “we don’t need no stinking education”. This IS the party of ignorance and intolerance, good luck Mr. President.


  2. Howdy I am so excited I found your blog page, I really found
    you by error, while I was researching on Digg for something else, Nonetheless I am here now and would just like to say thank you for a fantastic post and a all round exciting blog (I also love the theme/design),
    I don’t have time to browse it all at the minute but I have book-marked it and
    also added in your RSS feeds, so when I have time I will be
    back to read a lot more, Please do keep up the superb jo.



Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>