HomeMy WebLinkAboutResolutions - 2014.10.08 - 21524REPORT (MISC . #14170) October 8, 2014
BY: General Government Committee, Christine Long, Chairperson
IN RE: MR #14170 - 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:
The General Government Committee, having reviewed the above referenced resolution on
September 29, 2014, reports with the recommendation the resolution be adopted.as follows:
"MISCELLANEOUS RESOLUTION #_14170
BY: Commissioner David Woodward, District #19: Michael Spisz, District #3;
IN RE: BOARD OF COMMISSIONERS - SUPPORT FOR SENATE BILL 2432 BANK ON
LIDEt DAP REFINANCING ACTSupport for Reduction of Student
Loan Debt
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 7 and surpassing total credit card debt
—a-FA-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-mid-d-le-etassmany US citizens. 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 loan debt. This debt is
-ste-p-pi-nglimitind 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 -Youngyound borrowers are failing to keep up with paymentse and 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 2132, ntro€1-14-Gcd by Senator Elizab de4ts-to
refl-n-a-nee-their-loans-at-i-Filerest-rates as I-ow-a-8-3,-86-percent and save thousands of dollars-ri-t-he
process; and-
WHEREAS the Congressional Budget Office (CBO) estimates that slightly more than half of the
outstanding loan volume for federal student loans and loan guarantees (about $500 billion)
wou-l-dcould be refinanced under the bill; and
WHEREAS one in ten borrowers defaulted on their student loans within two years and rates of
default for federal student loans in some categories can be as high as 21.8%, placing a significant
burden on taxpayers; 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-wase .• • - • olicy proposals. Senator Richard Burr (R—NC) said the
new rate legislation "ensures access and affordability for students, and
GENERAL GOVERNMENT COMMITTEE
Motion carried unanimously on a roll call vote with Hoffman and Quarles absent.
WHEREAS-with interest rates near historic lows, homeowners, bus4nesses;and-even--loGa1
governments-with--good--c - Ge their debts but students have few-options,
Even though the-federal-government is by far the-biggest student lendort-effers-no-refthanG-ing
option. Private-refinancing-epitions 3re-e-x4remery-timited-federa-1—borrower-s-c-annot participate
without-saorifi -eteetiens-on-federal student loans; and
WHEREAS- • •* • - .* • * • :ive-student-lean-bo -• et at managing-their-debt-by
offe-ring-them the-opport•eie-federal-leans. All eligible federal FFELP and-Direct
student lean borrowers could refinance there-nigh interest-roans dowm-te-the-rates offered-to-new
fed-e-rak-berrewer-s-in--the-2-0-4-3-2-Q-1A-sehee-l-ye-ar-under--the-B-i-partisan Student-Loan Certainty Act.
NOW THEREFORE BE IT RESOLVED that the Oakland County Board of Commissioners, hereby
supports the Senate Bill 2432 Bank-on Students Emergeney Loan Refinancing-Act and urges
its adoption. encourages Members of Congress and the President to adopt a comprehensive bi-
partisan plan that addresses the existing student loan debt problem; giving debtors options to
refinance their student loans at market rates, provides incentives for early repayment of loans,
gives student the information they need to make an informed choice before entering into debt and
reduces the overall cost to the taxpayers.
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
1 Levin and Debbie Stabenow, Se-eater Elizabeth--Warreand 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."
Chairperson, on behalf of the General Government Committee, I move the acceptance of the
foregoing report.
GENERAL GOVERNMENT COMMITTEE
MISCELLANEOUS 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 (CBO) 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.
ption of the f ChairpOrson, th
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going resolution.
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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 simiiar resolutions.
District #19
ommesioner
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.
Resolution #14170 October 8, 2014
Moved by Dwyer supported by Quarles the resolutions (with fiscal notes attached) on the amended
Consent Agenda be adopted (with accompanying reports being accepted).
AYES: Dwyer, Gershenson, Gingell, Gosselin, Hatchett, Hoffman, Jackson, Matis, McGillivray,
Middieton, Quarles, Runestad, Scott, Spisz, Taub, Weipert, Woodward, Zack, Bosnic,
Crawford. (20)
NAYS: None. (0)
A sufficient majority having voted in favor, the resolutions (with fiscal notes attached) on the amended
Consent Agenda were adopted (with accompanying reports being accepted).
n 4 y
I HEREBY APPROVE THIS RESOLUTION
CHIEF DEPUTY COUNTY EXECUTIVE
ACTING PURSUANT TO MCL 45,559A (7)
STATE OF MICHIGAN)
COUNTY OF OAKLAND)
I, Lisa Brown, Clerk of the County of Oakland, do hereby certify that the foregoing resolution is a true and
accurate copy of a resolution adopted by the Oakland County Board of Commissioners on October 8,
2014, with the original record thereof now remaining in my office.
In Testimony Whereof, I have hereunto set my hand and affixed the seal of the County of Oakland at
Pontiac, Michigan this 8 th day of October 2014.
/114-
Lisa Brown, Oakland County