Schatz, Pocan Reintroduce Legislation To End Student Loan Debt Crisis

Press Release

"Every student in America deserves the opportunity to get a college education without student debt crushing them years after graduating. The Debt-Free College Act creates a federal-state partnership that would make debt-free college a reality for students within five years. Student debt isn't just tuition--it's books, housing, supplies and food, and this bill reflects the reality of those costs. If we truly believe in the value of our education system, then we should be making it easier for students to pursue higher education, not financially impossible. This bill is an integral first step to ensure that college is accessible to every person in this country."

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The Debt-Free College Act would establish a state-federal partnership that provides a dollar-for-dollar federal match to state higher education appropriations in exchange for a commitment to help students pay for the full cost of attendance without having to take on debt. The bicameral legislation, first introduced in 2018, was the first proposal to go beyond free tuition, and ensure that students leave college without the financial burden of student loan debt.

According to the Education Data Initiative, 72 percent of student debt holders believe their student loan debt will delay homeownership. A Board of Governors of the Federal Reserve System survey found that almost 50 percent of student loan borrowers who struggle to repay their loans said that they would miss or make partial student loan payments in an effort to cover a $400 emergency expense, while 13 percent said they would skip a rent or mortgage payment and 22 percent said that would skip a utility bill.

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