U.S. Rep. Ron Kind (D-WI) Feb. 12 introduced the Promoting Education for Lifetime Learning (PELL) Grant Funding Act, which directs any profit the government makes from federal student loan programs into federal Pell Grants to ensure that the grants remain sustainable for future students.
“Student loan debt is at a crisis level – here in Wisconsin, graduates enter the job market with over $28,000 in debt on average,” said Kind. “The government shouldn’t be making a profit from federal student loan payments, it should be reinvesting that money to make higher education more affordable for those who need financial help. Steering that money into federal Pell Grant programs helps more families afford college, which is one of the smartest long-term economic investments we can make.”
The federal government is expected to make $127 billion in profit from the federal student loan program over the next ten years. The PELL Grant Funding Act will stop the federal government from making money off of students who are paying off their debt.
The PELL Grant Funding Act is part of Kind’s recently introduced College Affordability Action Plan to make college more affordable for families in Wisconsin and across the nation.
“As the representative of 14 colleges and universities across western and central Wisconsin, helping families afford higher education is one of my top priorities,” Kind concluded. “As Gov. Walker moves to defund the UW System, it’s more important than ever to take concrete steps now to make higher education more accessible and affordable for future generations.”