(Glenbeulah) Congressman Glenn Grothman has introduced a bill aimed at protecting students from taking on excessive student loan debt. The Responsible Borrowers Act allows institutions of higher education to implement guard rails on how much money students can borrow.
Under current law, institutions of higher education are forbidden from providing guidance to students on the risks associated with borrowing up to the maximum amount of a federal student loan. As a result, students often borrow more than they need. Grothman says some people take decades to repay their loans and agonize over how much money they borrowed.
The Republican from Glenbeulah adds that some realize that they are putting their life on hold because so much of their paycheck goes to their lender. He says the Responsible Borrowing Act will temper these problems before they start by giving students, who are often first-time loan applicants, some much-needed guard rails from their school.
The legislation is endorsed by Moraine Park Technical College President Bonnie Baerwald and the National Association of Student Financial Aid Administrators.
