With student loan rates having doubled on Monday, State Senator Jim Ananich (D-Flint) is calling on lawmakers in Washington and Lansing to act on the impending debt crisis.

Congess failed to reach an agreement to avoid the rate hikes, and according to Ananich, proposals in Lansing to ease the burden on college students and families have not seen any traction.

In a statement Ananich said "massive student debt hurts our ability to get people working and destroys a family's chance to pull themselves out of financial trouble." Ananich, who is Democratic Vice Chair of the Senate Banking and Financial Institutions Committee, added "we can avoid the next bailout and economic collapse, so let's work together to find real solutions."

Ananich pointed to some proposals at the state and federal level he says are worth considering:

  • The Bank on Student Loans Fairness Act which would let college students take loans that have the same low rate that banks get from the Federal Reserve.
  • The Michigan 2020 Plan which would cover tuition costs for every Michigan high school graduate by reducing outdated business tax loopholes.
  • Bills that would give tax breaks to college graduates paying off student loans who stay and work in Michigan.

American college students are already said to be $1 trillion in debt. The doubling of the rates on Stafford Loans on Monday is estimated to add $2,600 of debt per student.