Blumenthal Announces Comprehensive Legislation to Ease Student Loan Debt
Press Release
U.S. Senator Richard Blumenthal (D-Conn.) today joined with Democratic colleagues to announce comprehensive legislation designed to make higher education more affordable. The Reducing Educational Debt Act (RED) contains three measures that would make two years of community college free, address the significant loss in value of Pell Grants by adjusting them for inflation, and allow borrowers to refinance their existing student loans at lower rates.
Senator Blumenthal separately introduced two additional measures to reduce student loan debt. The Strengthening Forgiveness for Public Servants Act would expand the existing Public Service Loan Forgiveness (PSLF) program, providing meaningful student debt relief to teachers, police officers, public health workers and others who dedicate their careers to public service. The second bill, The Make Student Grants Truly Tax-Free Act, would eliminate the tax penalty on low-income student borrowers who accept federal grants or scholarships.
"At countless roundtables across Connecticut with students, teachers, professors and parents, I have heard stories about the crippling effects of student loan debt. Too often, young people must mortgage their futures for a chance at a college education," said Sen. Blumenthal. "Significant steps are necessary to reduce barriers to higher education and bring a college education back within reach for American families. As part of a comprehensive effort to attack this crisis, I not only joined with my colleagues today to announce a broad approach to reduce student loan debt, but I also introduced two separate measures that will make college more affordable. The first bill rewards teachers, police officers and public health officials for choosing careers in public service by providing student debt relief based on the time they spend working in their communities. The second bill allows low-income students to pursue higher education by eliminating the tax penalty on federal grants and scholarships -- removing a significant economic hardship."
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