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WASHINGTON, DC – Rep. Gloria Negrete McLeod (D-Chino) released the following statement in support of President Barack Obama’s new action to help millions of student loan borrowers better manage their debt.
“Our economy is weakened when a generation of college graduates is burdened by large amounts of student loan debt,” said Rep. Negrete McLeod. “This is why I agree with the President’s new plan to help millions of people across the country pay off student loan debt. We must make college more accessible and affordable for the sake of our nation’s economy and its future.”
The executive actions the president took earlier this week will allow millions more borrowers to better manage their student loan debt, directing the Department of Education to expand the Pay As You Earn (PAYE) program. PAYE enables student loan borrowers to cap their loan payments at 10 percent of their monthly income. The new rules will open the PAYE program to borrowers who are currently ineligible because they have loans that originated before October 2007. The administration estimates that these new rules will mean that an additional five million borrowers can cap their monthly student loan payments in relation to their income.
In addition, on Saturday, President Obama urged Congress to pass the Bank on Students Emergency Refinancing Act (H.R. 4582; S. 2292), legislation cosponsored by Rep. Negrete McLeod that would help 25 million borrowers nationwide refinance their existing federal and private student loans to lower interest rates, similar to those that are currently available to new student loan borrowers. In total, American families would save around $55 billion under the legislation, which they can then reinvest in their local economy.
“I urge House Leadership to bring the Bank on Students Emergency Refinancing Act up for a vote. Passage of this legislation would help millions of struggling borrowers pay back their student loans at reasonable accommodations,” concluded Rep. Negrete McLeod.
Learn more about the Bank on Students Emergency Refinancing Act here.
