New legislation in the works in Nevada is taking on a student loan system that many say is broken.
Whether you agree that the current system has flaws, college students are graduating with record debts. In 2013, some 70 percent of college grads owed $28,000 upon graduation.
Without movement on the federal level, some states are pushing aggressively to ease that debt load.
In Nevada, Senate Minority Leader and Democrat Aaron Ford is trying to create a state-run program to refinance student loans.
Under the proposal, the Division of Business and Industry would set up the program by issuing revenue bonds and refinancing payments would help keep the program going.
“What we’re looking to do is make certain that the people, who have graduated from an in-state institution or who are residents of our state, have a mountain of opportunity instead of a mountain of debt,” Ford told KNPR’s State of Nevada.
The bill would also improve lender transparency by setting up an online database with information about private lenders that includes loan terms, repayment information and borrower education.
Elias Benjelloun, the president of UNLV’s Student Government, said he will be paying back thousands of dollars in student loans over at least 10 years.
He believes better repayment plans are a start.
“We need a comprehensive approach. We need to improve scholarships such as expanding Millennial Scholarships. We need to make sure graduates aren’t bogged down by student debt,” Benjelloun said.
He also believes locking in tuition for the whole four years is part of the formula.
Ford said the legislation to change refinancing for college students will help the middle class.
“These ideas are aimed at making certain that we can expand and protect the middle class can gain bipartisan support and ultimately make it to the governor’s desk for his signature,” Ford said.
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State Sen. Aaron Ford, D-Las Vegas; Elias Benjelloun, president, UNLV's student government,