Getting a higher education is expensive. Some lawmakers in Wisconsin are taking notice of that expense and trying to provide some debt relief to close to 750,000 Wisconsinites.
According to experts, it takes nearly 20 years to pay off student loans. The average loan debt for the University of Wisconsin Eau Claire 2011 to 2012 graduating class was just under $24,000. The Financial Aid Director for the university says that 70 percent of students have some sort of loan.
Bill 376, which hasn't yet passed, is designed to help people in Wisconsin with federal student loan debt. Under the bill, federal student loan payments could be deducted from state income tax. It would also give borrowers the option to refinance the interest rates.
Opponents of the bill claim that these measures will encourage students to take on more debt. Senator Dave Hansen, who authored the bill, says that it will give students the confidence to borrow money necessary to receive a degree.
Sen. Hansen says that the economy is being hurt by student loan debt. He says that these debts are hampering home sales and car sales. He wants students to have the option of refinancing loans to get a better interest rate, similar to the option of refinancing a home.
Student loan payments can eat away at a monthly budget and make it difficult to keep up with other bills. If you find that you are unable to take care of your monthly bills, such as credit card payments or a mortgage, you might have legal options to help you deal with those debts. Seeking the advice of a Wisconsin bankruptcy attorney might help you to learn what debt relief options you have so you can make an informed decision about your financial future.
Source: WEAU.com, "New bill designed to help students with education loans" No author given, Feb. 06, 2014