Congressman Zeldin Hosts Press Conference on His Bill Addressing Student Loan Debt Crisis
Yesterday morning, Congressman Lee Zeldin held a press conference to discuss a critical piece of legislation, addressing the current student loan debt crisis. Zeldin went over the need for The Earnings Contingent Education Loans (ExCEL) Act of 2015 (H.R.3695) in depth, calling on fellow members of Congress to act swiftly to pass this critical legislation.
“I am proud to introduce the ExCEL Act in the House of Representatives to help address the student debt crisis faced by the American public, a serious and growing problem in the United States. Estimates show that currently 40 million Americans have student debt totaling over $1.2 trillion. Young college graduates are having difficulty securing structured loans that can help them afford to get their professional lives off the ground successfully. Under the current system, borrowers are limited to rigid mortgage-like repayment systems which offer little flexibility in terms of repayment. The ExCEL Act would replace the current broken student loan system with an individualized loan repayment program tailored to each student’s needs. Borrowers would be able to pay their loans off quicker as they earn more money, but this new system would also provide additional protections for borrowers during periods of low income levels or even unemployment.” – Congressman Lee Zeldin
Did You Know…
- Presently the outstanding balance in student loans is close to $800 Billion.
- The government is expected to lose approximately $20 billion of that debt, over the next 10 years, according to predictions by the nonpartisan Congressional Budget Office.
- Almost one third of federal borrowers have either defaulted on student debt, or are in the deferment or forbearance process. – Consumer Financial Protection Bureau report 2013
- Between 2013 and 2015, approximately 12% of student loan borrowers have defaulted on loan repayments.
The current repayment model is flawed, requiring a fixed monthly payment, regardless of the borrower’s economic status. Congressman Zeldin’s ExCEL Act would institute an affordable, income-based repayment plan, molded to the needs of every borrower. The ExCEL Act would deduct loan payments from the borrower’s paychecks based on a payment schedule, specific to their financial needs. When a borrower’s salary increases, the monthly obligation only marginally increases. The increase is kept minimal so borrowers do not deter from striving to obtain higher paying jobs for fear of huge loan payment hikes. The ExCEL Act would lower the cost of student loans for taxpayers by decreasing default rates. Specific terms and restrictions in the legislation ensure the stability and future of the student loan program, by customizing payments on a case by case basis, guaranteeing the financial obligations are kept for each borrower.
“This flexible repayment approach focuses on the student’s ability to repay loans based on their income to ensure the student is not being set up to fail, while establishing a program that ensures loans are paid back in their entirety, and incentivizes graduates to repay their loans more quickly. We should do all that we can to help younger Americans achieve their full potential as future leaders of this great country. That goal can not materialize when new college graduates are saddled with excessive volumes of debt. The ExCEL Act must be signed into law as soon as possible so we can take the necessary steps to address this growing crisis.” – Congressman Lee Zeldin
LIU Dean Donna Di Donato, applauded Congressman Zeldin for his initiative to combat the current student loan debt crisis. “All of us at LIU are here because we believe in the transformative power of higher education, and this commitment to our students includes making a college education accessible to students from all walks of life.” – Donna Di Donato, Dean of Long Island University
New York State Senator Ken LaValle urged community members and local officials to support the ExCEL Act, naming Student Loan debt as one of the most serious financial issues facing young adults today. “I applaud Congressman Zeldin for focusing on the growing student loan debt crisis. I have worked very hard to enact measures ranging from loan forgiveness to increased tuition assistance recognizing that student loan debt is one of the most serious financial issues facing our young people today. I look forward to working with Congressman Zeldin in an effort to further ease the burden on New York Students.” – New York State Senator Ken LaValle
Suffolk County Legislator Al Krupski spoke to the burden that student debt has on local economy in addition young adults, venturing out into the workforce. The Legislator spoke to concerns of our young people, starting off with long term debt…“In light of this issue, most students today have little choice but to consider the ramifications of taking on such long-term debt in their young lives. Congressman Zeldin’s bill is a positive step in addressing the student debt crisis and one which will make repayment of student loans more manageable for many individuals. I thank him for his leadership on this issue.”
A copy of the bill can be found HERE