Bill aims to help refinance higher education student loans

2 years 7 months 1 week ago Wednesday, February 07 2018 Feb 7, 2018 Wednesday, February 07, 2018 3:41:00 PM CST February 07, 2018 in News
By: Tyler Emery, KOMU 8 Reporter
loading

JEFFERSON CITY - Students could soon have another option for taking out loans for higher education.

Rep. Kip Kendrick, D-Columbia introduced HB 1273, which gives the Missouri Higher Education Loan Authority (MOHELA) the ability to issue loans to students to refinance their private or federal loans. 

Kendrick said the bill establishes a program that allows students to refinance at lower interest rates and spread out the life of the loans, to up to 25 years, rather than the current 10. He said the program intends to ensure graduates don't have to repay loans "when their earning potential is the least and their job security is fairly low" right out of school. 

"I don’t necessarily think were at a debt crisis level yet. However, I do think it's more of a repayment crisis we're currently seeing," Kendrick said.

As of now, there isn't a way to receive student loans from the state. MOHELA currently only services existing federal student loans and deals with repayment plans. The proposed program would be an option for MOHELA to adopt.

"MOHELA would be buying the loans from the federal government for particular individuals they're going to refinance. It would take students out of a federal loan and put them into a MOHELA loan that would refinance it at a lower rate," Kendrick said. 

While this program would shift students out of federal loans and into state loans, Kendrick said the bill contains protections against risky student borrowers. 

"I wanted to make sure that the state wasn't going to refinance individuals that were risky of default or delinquency. That doesn't necessarily do any good for us," Kendrick said. "There's no reason for us to shift a risky borrower from the federal government to the state government."

As part of the program, anyone looking to refinance their loans must have graduated from an accredited institution with an associate's degree or higher. 

Brandon Henderson is a student at the University of Missouri-Kansas City and spoke in support of the bill as a representative for the Associated Students of the University of Missouri. 

Henderson said the proposed bill acts as a "life preserver" for students to help ease the burden of student debt. 

"Many students my age, including myself, crave the same opportunities that many generations before us received. And I know sometimes hard work is not enough," Henderson said. "This bill is an investment in students and students are an investment in the state of Missouri."

Kendrick said this program his bill proposes is "not a fix-all" for student loan debt, but that it is a step in the right direction.

"It will help a significant amount of people. There's only a limited amount of things we can do. This is one of them," Kendrick said. 

More News

Grid
List
COLUMBIA – While high school football has been happening so far this season in the wake of COVID-19, one part... More >>
10 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 6:47:00 PM CDT September 19, 2020 in News
COLUMBIA – Supreme Court Justice Ruth Bader Ginsburg left lifelong impressions on two Columbia students. The students, a high... More >>
10 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 6:47:00 PM CDT September 19, 2020 in News
COLUMBIA - Monday night will likely be a long one for the Columbia City Council as it gets another... More >>
11 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 6:14:00 PM CDT September 19, 2020 in News
SPRINGFIELD, Mo. (AP) — Authorities say a 19-year-old was fatally shot near the Missouri State University campus in Springfield. ... More >>
14 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 2:46:00 PM CDT September 19, 2020 in News
As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. Previous coverage: ... More >>
15 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 2:14:00 PM CDT September 19, 2020 in News
COLUMBIA - No one was injured in an RV fire in southwest Columbia on Saturday. No injuries have been... More >>
16 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 12:48:00 PM CDT September 19, 2020 in News
JEFFERSON CITY - A fire at a Jefferson City home displaced two people early Saturday morning. According to a... More >>
19 hours ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 9:43:00 AM CDT September 19, 2020 in News
(CNN) -- President Donald Trump hailed Supreme Court Justice Ruth Bader Ginsburg as a "brilliant mind" in a statement Friday... More >>
1 day ago Saturday, September 19 2020 Sep 19, 2020 Saturday, September 19, 2020 5:00:00 AM CDT September 19, 2020 in News
(CNN) -- Supreme Court Justice Ruth Bader Ginsburg died on Friday , the court announced. She was 87. Ginsburg... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 6:43:00 PM CDT September 18, 2020 in News
(CNN) -- For a father and son, a hug before the first game of football season is a special moment.... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 6:23:00 PM CDT September 18, 2020 in News
Week four of Friday Night Fever has arrived. Before you head out to your team's game or tune in to... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 5:56:00 PM CDT September 18, 2020 in Friday Night Fever
Games for high school football games will become available below. Final scores are in bold and home teams are on... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 5:44:00 PM CDT September 18, 2020 in Friday Night Fever
Welcome to Week 4 of Friday Night Fever! Our game of the week features the Marshall Owls taking on the... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 5:43:00 PM CDT September 18, 2020 in Friday Night Fever
STOVER - COVID-19 is affecting young and old alike in Morgan County. According to the Morgan County Health Center... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 5:03:00 PM CDT September 18, 2020 in News
COLUMBIA — Battle High School canceled its game set for Friday against the Hickman High School Kewpies. Battle announced... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 3:14:00 PM CDT September 18, 2020 in Sports
NEAR CRANE, Mo. (KY3) - The Missouri Water Patrol is investigating a deadly crash killing a father and son from... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 2:00:00 PM CDT September 18, 2020 in News
MISSOURI- As COVID-19 continues to spread, KOMU 8 will continue to update you about impacts in the community. The... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 2:00:00 PM CDT September 18, 2020 in News
ST. LOUIS COUNTY, Mo. - As parents and student-athletes continue to protest the ban on some youth sports games... More >>
1 day ago Friday, September 18 2020 Sep 18, 2020 Friday, September 18, 2020 1:27:00 PM CDT September 18, 2020 in News
Columbia, MO
Broken Clouds 50°
6am 48°
7am 49°
8am 51°
9am 57°