Congresswoman Laura Richardson Introduces Legislation to Provide Debt Relief to Recent College Graduates

Press Release

Today, Congresswoman Laura Richardson introduced legislation that would provide student loan debt relief for recent college graduates searching for employment. The Unshackling Students to Lead, Excel, Act, Develop and Succeed Act, or "U.S. LEADS Act," would assist recent college graduates who are entering a difficult job market by allowing them to defer payment on their federal student loans without accruing interest when the national unemployment rate exceeds seven percent, or when the unemployment rate for 21-25 year olds exceeds nine percent.

"The American higher education system is the envy of the world, providing young people with the skills and knowledge necessary to succeed in today's global economy. However, as the value of a college education has risen, so has the cost of tuition at universities across America. Outstanding student loan debt is estimated to reach one trillion dollars this year, a direct consequence of rising tuition costs and fewer employment opportunities.

"Students who have worked hard and played by the rules deserve the peace of mind in knowing that they will not be crushed by the weight of their student loan debt if they are unable to retain gainful employment as soon as they graduate from college

"Helping young Americans pursue higher education provides them with the most secure pathway to the middle class and is an investment in our country's future. Our economy depends on an educated citizenry to out-compete and out-innovate the rest of the world, and maintaining access to a quality and affordable education is central to preserving America's status as the global center for academic research and technological innovation.

"If my bill were to pass, it would provide relief to more than 25,000 recent college graduates in my congressional district alone" said Richardson.

According to a recent Gallup poll, 13.6 percent of young adults were unemployed and 32 percent were underemployed in April 2012. The national unemployment rate in April as measured by the Bureau of Labor Statistics was 8.1 percent.

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