ORLANDO, Fla. — Sen. Bill Nelson will appear in Orlando on Wednesday to unveil new legislation to cut student loan interest rates and to allow borrowers to refinance existing federal student loans.
Nelson's bill seeks to to permanently cap interest rates for undergraduate students at 4 percent.
Last week, the federal government increased rates for new loans from 3.76 percent to 4.45 percent.
Michael Silurso, a student at the University of Central Florida, said he welcomes the proposal.
"It is good news to me," he said. "I am sure it is difficult for a lot of kids (who) are graduating, and they are trying to find a job, and they already have debt that they have to pay off."
UCF student Laila al-Khalaf said too many students have to drop out of school because they can't afford their books and their loans.
"They're so terrified that they're going to be in debt the rest of their lives because of these student loans, and it's a shame," she said.
Al-Khalaf said the proposed legislation is a step in the right direction, but she said students should be practical when selecting a major.
"I think you are going to be able to pay off those loans quicker if you start with a better career," she said.
During a roundtable meeting with students Wednesday afternoon in Orlando, Nelson said he was pushing for the cap so students would not have to wonder what their loans would end up costing them once they graduated.
"The question is equity and fairness and ability for students to continue if they want to have an equal opportunity to an education," he said, noting that the price tag could make his proposal difficult to pass. "When we get this thing costed out by the Congressional Budget Office, maybe they put a big price tag on it. Then that would be tougher to pass, no doubt about it."
Nelson will meet with students Wednesday afternoon for a roundtable discussion in Orlando.
Cox Media Group
