Dem bill would make student loan payments contingent on income

House lawmakers have introduced legislation to make student loans more affordable.

Reps. Jared Polis (D-Colo.) and Richard Hanna (R-N.Y.) unveiled the Earnings Contingent Education Loans (ExCEL) Act on Friday to make the student loans payments contingent on a graduate’s income.

Under the ExCEL Act, student loan payments would be a percentage of a graduate’s income. As the former student makes more money, they pay more on their loan. Graduates, however, would not have to make payments during periods of unemployment.

“Financial ruin should never be the cost of receiving a higher education, but that is the sad reality for thousands of recent graduates,” Polis said in a news release.

This is the second time the bill has been offered in the House. Polis and former Rep. Tom Petri (R-Wis.) introduced the bill with Hanna as a leading cosponsor in the 113th Congress.