State Sens. Vincent J. Hughes (D-Philadelphia/Montgomery), Katie Muth (D-Montgomery/Chester) and Lindsey Williams (D-Allegheny) recently revealed a plan to help students and their families pay down student loan debt.
The plan, PA Student Higher Education Lending Protection Act, allows students to refinance high-interest debt and provides tax credits for those who have outstanding student loans.
The refinancing program would be funded by up to $1 billion in bond financing.
A student loan tax credit would be established, allowing up to $500 per year tax credit against their personal income tax liability to help manage student loan costs.
Under the act, employers also would be encouraged to help employees with debt by making make direct contributions into a 529 account.
“Not only is the expense of postsecondary education sky high, but the cost of borrowing to meet tuition and living expenses financially cripples graduates for years,” Hughes said. “Ignoring the problem only makes it worse as more students and their families struggle to pay for necessities. That’s why we have to take bold action through an aggressive plan like PA Student HELP.”
More than 1.8 million Pennsylvanians carry student loan debt, and there is an estimated $68 billion in outstanding student loan debt in the state. Pennsylvania has the highest student debt per capita in the country.