“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 Rep. 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 Wisconsin families afford college, which is one of the smartest long-term economic investments we can make.”
The federal government is expected to make $73 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 Wisconsin students who are paying off their debt.