Cap the interest rate of state student loans at 3% in Minnesota.

 

The purpose behind this bill is to give students leeway when they are paying back student loans, so they can continue

their education without the burden and stress of debt.

 

Capping student loans will help students from taking on excessive debt that they can’t repay. Interest adds additional

costs to the price of college education which is not always immediately apparent for students who are applying. This

means that students are paying a lot more than they had in mind and could deter them from finishing their degree.

Lowering interest rate will lead to more people getting degrees and working for jobs that need more workers. Also,

people having more money in their account will lead to people spending more money which we as a consumer economy would

benefit from.

 

Deter - discourage (someone) from doing something by instilling doubt or fear of the consequences.

Interest rate - the proportion of a loan that is charged as interest to the borrower, typically expressed as an annual

percentage of the loan outstanding.

Leeway - the amount of freedom to move or act that is available.

 

The money for funding this bill will come from a sales tax increase of 0.5%.

 

N/A

 

This bill will be effective by June 1st, 2026.