Recently, the topic of college affordability has been brought into the spotlight. Sen. Charles Schumer (D-NY) has joined Sen. Elizabeth Warren (D-MA) and other Senate Democrats to introduce legislation to help students in debt.
According to the Institute for College Access & Success (TICAS), seven in 10 seniors in the U.S. who graduate from public and nonprofit colleges in 2014 had student loan debt with an average of $28,950 of debt per graduate.
“In today’s uber-competitive and globally connected economy, a college education is a necessity, but it is being priced as a luxury – and it is breaking the bank for students and families across Upstate New York,” Schumer said in a statement.
In New York State alone, 61 percent of graduates in 2014 have an average of $27,822 of debt per student, according to the TICAS.
According to Schumer, over the last decade more students than ever in all income levels are being forced to borrow both federal and private lenders to finance their college education due to the cost of college tuition on the rise across the country.
He plans to push Congress to address college affordability in 2016 which is a part of his new #InTherRed campaign, Schumer explained in a conference call with New York college newspapers.
“I am working hard with my fellow Senate Democrats to launch our campaign to make sure higher education doesn’t put students in the red, and we will make it our mission to make Congress act,” Schumer said in a statement.
The legislative package known as the RED (Reducing Educational Debt) Act was first announced at a press conference in the U.S. Capitol building with Senate Democrats and dozens of students and advocates.
The bill comprises of three senate bills that would make two years of community college free, address the significant loss in value of federal grants such as Pell Grants by adjusting them for inflation and allow borrowers to refinance their existing student loans at lower rates.
Under the RED Act, 2-year community college would be tuition free by creating relationships between the federal government and states and providing a federal match of $3 for every $1 invested by the state.
According to Schumer, the RED Act would also allow student loan borrowers to have a chance to refinance their loans at the same lower rates new borrowers are offered in the loan program of the 2013-2014 school year.
The bill would also ensure that Pell Grants rise with the Consumer Price Index (CPI) allowing the value of the grant to be sustained in the future.
According to Schumer, overall the legislation would aim to making college more affordable for middle-class families who are struggling with the rising cost of higher education tuition.
“With tuition costs continuing to rise, middle-class families and their children are forced to take on significant debts in order to obtain a college diploma,” Schumer said in a statement. “This student debt is debilitating, and it is a huge burden on the shoulders of millions of young Americans; it is holding back their ability to achieve the American Dream and is a significant drag on our economy – so it’s long past time that we start off on the path towards making college debt free for every student in this country.”
