HomeMy WebLinkAboutResolutions - 2014.07.16 - 21413MISCELLANEOUS RESOLUTION # 14170
BY: Commissioner David Woodward, District #19
IN RE: BOARD OF COMMISSIONERS — Support for Senate Bill 2432 — Bank on Students
Emergency Loan Refinancing Act
To the Oakland County Board of Commissioners
Chairperson, Ladies and Gentlemen:
WHEREAS Student loan debt is exploding, creating a crisis that threatens our economy, with
outstanding student loans now totaling more than $1.2 trillion, surpassing total credit card debt —
and every year.
WHEREAS an astonishing 71% of college seniors had debt in 2012, with an average outstanding
balance of $29,400 for those who borrowed to get a bachelor's degree; and
WHEREAS student debt is crushing the middle class. Key federal economic agencies like the
Federal Reserve, the Treasury Department, and the Consumer Financial Protection Bureau
have weighed in on the dangers of exploding student debt. This debt is stopping a growing
proportion of families from buying homes, saving for retirement, and making purchases that will
keep our economy on the road to recovery; and
WHEREAS Young borrowers are failing to keep up with payments. One in seven borrowers
defaults on federal student loans within three years of beginning repayment. Other borrowers
are just barely keeping their heads above water — in total, 30% of Federal Direct student loan
dollars are in default, forbearance, or deferment; and
WHEREAS Senate Bill 2432, introduced by Senator Elizabeth Warren, will allow students to
refinance their loans at interest rates as low as 3.86 percent and save thousands of dollars in
the process; and
WHEREAS the Congressional Budget Office (CB0) estimates that slightly more than half of the
outstanding loan volume for federal student loans and loan guarantees (about $500 billion)
would be refinanced under the bill; and
WHEREAS last year, large bipartisan majorities agreed that federal loan rates were far too high
and voted to lower them this year for new borrowers — but did nothing for existing borrowers.
House Speaker John Boehner (R-OH) hailed last year's agreement as a "market-based
solution" that was "consistent" with Republican policy proposals. Senator Burr (R- NC) said the
new rate legislation "ensures access and affordability for students"; and
WHEREAS with interest rates near historic lows, homeowners, businesses, and even local
governments with good credit regularly refinance their debts — but students have few options.
Even though the federal government is by far the biggest student lender, it offers no refinancing
option. Private refinancing options are extremely limited, and federal borrowers cannot
participate without sacrificing key consumer protections on federal student loans; and
WHEREAS this legislation would give student loan borrowers a fair shot at managing their debt
by offering them the opportunity to refinance their federal loans. All eligible federal FFELP and
Direct student loan borrowers could refinance their high-interest loans down to the rates offered
to new federal borrowers in the 2013-2014 school year under the Bipartisan Student Loan
Certainty Act.
omrasseronej2/
District #
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners,
hereby supports the Senate Bill 2432 — Bank on Students Emergency Loan Refinancing Act and
urges its adoption.
BE IT FURTHER RESOLVED that the Oakland County Clerk/Register of Deeds is requested to
forward a copy of this legislation to the Michigan Congressional Delegation, U.S. Senators Carl
Levin and Debbie Stabenow, Senator Elizabeth Warren, and Oakland County's legislative
lobbyists.
BE IT FURTHER RESOLVED that the Oakland County Clerk/Register of Deeds is requested to
forward a copy of this resolution to the Michigan Association of Counties and the National
Association of County Officials, with strong encouragement that their respective member
counties also adopt similar resolutions.
rson, wffiirtove thp apciption of the fOribgoing re,solution.
missiorOaid WooOtard
District #19
CommistionOr
District # 10
Commissioner
District #
7161a..)
Commissioner
District #
Commissione.r„
District #
Commissioner Commissioner
District # District #
Commissioner Commissioner
District # District #
Commissioner Commissioner
District # District #
Commissioner Commissioner
District # District #
Resolution #14170 July 16, 2014
The Chairperson referred the resolution to the General Government Committee. There were no
objections.