WASHINGTON, D.C. – March 25, 2015 – (RealEstateRama) — Senate education committee Chairman Lamar Alexander (R-Tenn.) today voted to simplify student loan repayment plans and make it easier for students to repay their student loans, and voted against the Senate Democrats’ proposal to raise taxes and increase the federal debt to reduce some old loans by $1 a day but do nothing for new students.
Alexander said: “I voted for a long-term, serious proposal to simplify the maze of student loan repayment options and make it easier for students to manage their loans relative to their income. I voted against an unserious and unfair proposal to raise taxes and increase the debt just to save former students about $1 a day on their loans, on average, while doing nothing for current or future students. I look forward to discussing more serious, long-term proposals that will help students pay for college when the Senate education committee works on reauthorizing the Higher Education Act.”
The bipartisan budget amendment to make federal student loan repayment options more manageable was introduced by Senator Richard Burr (R-N.C.) and cosponsored by Senators Angus King (I-Maine), Alexander, Kelly Ayotte (R-N.H.), Jeanne Shaheen (D-N.H.) and Mark Warner (D-Va.). The amendment would allow for a simplified approach to student loan repayment options that may reduce the numerous income-based repayment options that now exist. This makes student loan repayments more manageable and easier in which to enroll.
Alexander last year opposed the bill upon which the Democrats’ budget amendment was based. He said then that the average college graduate with a four year degree has $27,000 in loan debt and, based on data provided by the Congressional Research Service, refinancing that level of debt under the Democrats’ proposal would save the borrower about $1 a day. The bill would, at the same time, cost taxpayers $72 billion in higher income taxes and could add as much as $420 billion in federal debt.
The Senate today voted to accept the Burr amendment. It rejected the Democrats’ proposal by a vote of 46-53.