Sen. King to offer student loan reform bill

Sen. Angus King (I-Maine) said he would introduce legislation that aims to simplify student loan repayment options when the Senate returns from August recess.

“A simpler system will help students better and more easily understand what their options are,” said King, “so that they can make a choice that is in their best financial interest.”

{mosads}King said Sen. Richard Burr (R-N.C.) would co-sponsor the bipartisan bill they plan to introduce later this month. It would consolidate some benefits of existing repayment programs into an income-based repayment option to ensure no borrower pays more than 15 percent of their discretionary income.

The Senate is expected to hold another vote on Sen. Elizabeth Warren’s (D-Mass.) Bank on Students Emergency Refinancing Act. Republicans blocked the legislation earlier this year, but if the bill moves forward this time, King could offer his measure as an amendment.

“The rising cost of education is a huge issue facing the country,” King said. “The amount of student loan debt is now in the trillions, and the problem is that it creates a situation where students start their career carrying a tremendous weight on their back.”

Last year, King helped negotiate the current student loan rate deal, but some Democrats have called for more aggressive reforms; the average college student leaves with more than $28,000 in debt.