We’ve been seeing some movement recently in terms of reforming the federal student loan system. The Obama administration created the new Pay As You Earn repayment plan, an income-sensitive plan with low payments and faster forgiveness than the existing income-sensitive options. We also saw the introduction of the Student Loan Forgiveness Act of 2012 and The Student Loan Fairness Act of 2013 in Congress, two powerful student loan reform bills that would go a long way to fixing a lot of what’s wrong with the federal student loan system.
There is another, less-known student loan reform bill in the works, and people are starting to talk about it. It’s a bill authored by Rep. Tom Petri (R-WI) called the Earnings Contingent Education Loan (ExCel) Act.