Rep. Andrew Fink (R-Adams Township) has introduced a resolution calling on Congress to end the federal student loan program, which would cease the issuing of student loans.
“Although the federal student loan program was established to make higher education an attainable reality for all Americans, it has instead facilitated a new array of problems, including the precipitous rise of tuition costs, making higher education more expensive and unaffordable,” Fink said. “Our elected leaders in Washington must accept that the federal student loan system is a disservice to American students and eliminate it before it does any more financial harm to our nation.”
There are 45 million borrowers holding more than $1.6 trillion in federal student loan debt in the U.S. Further, 40 percent of college students drop out prior to completing their degrees and 84 percent of dropouts with student debt fail to pay back their loans after 12 years.
Since 1980, American university tuition has more than doubled, affecting all students regardless of whether they take on loans. Fink said the rise in tuition is directly correlated with the growing enrollment rate that has resulted from the federal student aid system.
“The future of higher education would be better off without the existence of the federal student loan program,” Fink said. “I am urging Congress to consider the future of America and the ramifications that the current system has on the affordability of college and the financial wellness of students after college.”
The measure is House Resolution 323.
“Time and again, Gov. Whitmer has vetoed our attempts to reduce the income tax burden on Michigan’s working families – but thanks to systems put in place by Republican legislators in 2015, reductions will happen without requiring her signoff.”