Sen. Paul discusses new student loan legislation

BOWLING GREEN, Ky.- Sen. Rand Paul has introduced legislation that he says well help Americans dealing with student loan debt.

The Higher Education Loan Payment and Enhanced Retirement Act, also known as HELPER, was introduced in the senate by Paul on Monday.

According to the Republican senator, the Act would allow Americans to annually take up to $5,250 from a 401(k) or IRA-tax and penalty free- to pay for college or to pay back student loans. The funds could also be used to pay tuition and expenses for a spouse or dependent.

The plan would enable two parents and a child, for example, to put over $15,000 in pre-tax funds in one year toward tuition or loan repayment if each set aside the maximum. Currently, Americans can only pay for their student loans with after-tax money, placing an unnecessary constraint on their budget.

In a satellite interview with WNKY on Wednesday, Paul called student loan debt a non partisan issue and is hopeful his colleagues on both sides of the aisle will join him.

“I think there is a universal agreement that there is a problem,” said Paul. “We all agree what the problem is and that’s a lot of student loan debt and a potential for students to default. Now we have to agree on the solution.”

Sen. Paul will return to Bowling Green this weekend for a book signing with his wife at the Barnes and Noble on Campbell Lane at 1 p.m. Saturday. They will sign copies of their new book, The Case Against Socialism.