There is over $1 trillion in outstanding student loan debt nationally, and approximately $7.2 billion in Nevada. Allowing so much outstanding debt to exist is a drag on economic growth, and it prevents people from investing in themselves. Student loan debt depletes savings and drags down credit, prevents young people from buying a first home, limits flexibility in career options and opportunities, and decreases consumer spending, which creates a ripple effect into the larger economy. Unsustainable levels of student loan debt will also ultimately limit risk taking, preventing the next wave of innovative entrepreneurs from starting businesses. If student loan debt continues to rise, we should expect fewer and fewer people to be able to participate fully in the economy.
Aaron Ford proposes that the State of Nevada create the Student Loan Refinancing Program, a state lending program that gives Nevadans the opportunity to consolidate and refinance student loans. Easing the burden on students paying off their loans will spur growth that benefits everyone. Nevada is currently attempting to create a one-stop shop for Nevadans to consolidate loans into one payment and refinance at a lower interest rate. The proposal also includes educational components that are designed to help prevent students from making bad decisions regarding how much and when to borrow so they can be prepared before they begin taking on debt.