Students, recent graduates discuss college costs with Sen. Baldwin
University of
Wisconsin-Stevens Point students and recent graduates shared some of
their challenges regarding college affordability with U.S. Sen. Tammy
Baldwin when she visited campus Sept. 4.
Some students said they
didn’t realize how much loan debt they were accumulating through their
college years, or understand the difference between different types of
loans. Students from middle-income families get squeezed, said Charlie
Greiber of Waunakee, a senior majoring in business administration. He
was among 10 students who share their experiences with student debt.
Baldwin
is cosponsoring a Bank on Students Emergency Loan Refinancing Act. The
bill would allow those with outstanding student loan debt to refinance
at lower interest rates offered to new borrowers.
The U.S.
Department of Education estimates about 25 million borrowers could
benefit from refinancing under this legislation, including 515,000
Wisconsinites, Baldwin’s office said.
“Making college affordable
is one of the most important steps we can take toward building a strong
path to the middle class for all Americans,” she said. “A college
education should be a path to prosperity not a path to indebtedness, but
student loan debt is holding back an entire generation and creating a
drag on economic growth for our country.”
The average student loan
debt was $27,167 for UW-Stevens Point students completing bachelor’s degrees in
2011-12, the most recent data available. That’s slightly lower than the
UW System average of $28,002.
Student loan debt totals $1.2
trillion in the United States, according to the Federal Reserve, the
fastest growing household debt category. Nearly 40 million Americans
have outstanding student loans.
Currently, students who work while
attending college often are eligible for less financial aid because of
their work income. Baldwin also said she plans to introduce legislation
to increase the amount working students can earn without that income
counting against them in accessing need-based federal financial aid,
including Pell Grants.