U.S. Sen. Richard Burr (R-N.C.) and co-sponsors Angus King (I-Maine), Mark Warner (D-Va.), Marco Rubio (R-Fla.), Susan Collins (R-Maine) and Lamar Alexander (R-Tenn.) on Thursday introduced the Repay Act, a bill designed to reform federal student loan repayment programs.
The bill aims to reduce the complexity of federal student loan repayment programs, consolidating the terms of the current plans into two options: a fixed 10-year repayment plan and a single repayment alternative based on the borrower’s income.
“North Carolinians are tired of seeing their hard-earned tax dollars go to waste in a student loan program that serves neither their interests nor those of the college students it is intended to help,” Burr said. “The Repay Act has two very simple goals. First, students should be presented with clear options on how to repay their student-loan debts affordably and in a straightforward manner. Second, taxpayers should no longer subsidize the excessive borrowing and loan forgiveness that Washington has allowed to take place over the past few years.”
The Repay Act addresses many of the concerns lawmakers have with the current system by making loan repayment more affordable for the middle class, eliminating duplicative repayment options, streamlining eligibility terms, and maxing out payments at 15 percent of discretionary income.
“This bipartisan proposal simplifies loan repayment by consolidating many of the benefits of the existing plans,” King said. “(It will) make it easier for students to decide which option best fits their needs, and lowers the chance they will fall behind on their payments.”
“I look forward to working with my colleagues, Senators King, Alexander, Warner, Rubio, and Collins, to see the Senate pass this legislation to make repaying student loans simpler and fairer,” Burr said.