Student Loan Bill
In order to simplify and improve the federal student loan system, Rep. Petri introduced H.R. 1716, the Earnings Contingent Education Loans (ExCEL) Act. The proposal calls for universal income-based repayment on federal student loans, and utilizes the employer-withholding system to make the loans more responsive to borrowers' economic conditions and simplify the repayment process. The bill also includes changing the student loan interest rate structure to one that is market-based and follows the 10-year Treasury rate.
These reforms have been tested in other countries and are proven to work. In addition to ensuring borrowers have affordable payments so they can repay what they borrow, the proposal also saves significant taxpayer dollars by simplifying and consolidating the complex system of loan options we have now.
Please see below for more about the bill and other information related to improving our student loan repayment system.
Rep. Petri's Op-Ed in the Chronicle of Higher Education - June 9, 2013
Washington Post Editorial - "Reforming Student Loans Off To a Good Start" - May 21, 2013
Rep. Petri's Op-Ed in The Hill - May 7, 2013
Washington Post Editorial - May 5, 2013 - "A Better Approach to Student Loans"
- Rep. Petri's response to editorial