Campus Connection

Gov. Scott Walker shares proposed legislation that builds on tuition freeze

Gov. Scott Walker discussed a new proposed legislative package that aims to make college more affordable during a visit to UW-La Crosse Monday. The governor said while a four-year tuition freeze for the UW System saved students thousands of dollars, there is more work to be done. “We know that the vast number of careers that pay enough to support a family in this state require some sort of education past high school and we want to make it as affordable as possible,” the governor told a small crowd gathered at UWL’s Cleary Alumni & Friends Center. One of the best ways to manage climbing student debt is to keep the cost of higher education down, he said. The governor was proud of a four-year tuition freeze that has saved students an average of more than $6,000 considering the average 8.1 percent yearly tuition increases in the 10 years before the freeze, he said. Walker’s plan includes six legislative proposals focused on making higher education more affordable, reducing student debt and making the cost of higher education more transparent. Among the proposals is legislation that would eliminate any cap on the tax deduction for student loan interest to make sure students aren’t taxed for interest on student loan debt. Another proposal would fund new internship coordinator positions in the Department of Workforce Development and the UW System. [caption id="attachment_44609" align="alignleft" width="300"] Ben Stelter[/caption] UWL junior Ben Stelter, chair of the College Republicans, said the governor is addressing the need to do more in the area of college affordability beyond freezing tuition. He particularly liked the governor’s proposal to increase internships. Stelter has had good experiences working with UWL Career Services, which has a strong internship program. “They [Career Services] are the people who can really help you to achieve what you are capable of,” said Stelter. Walker plans to share more details about the college affordability legislative package during his State-of-the-State address Tuesday, Jan. 19. “In my last campaign for governor I said that I want to make sure everyone who wants a job can find a job,” said Walker. “One of the best ways to do that is to provide many excellent opportunities for post high school education …” Stelter said that a big price tag for college is expensive and paying for it is difficult, but he was glad the governor focused on the issue. “It’s important to keep costs down,” he said. “I think the governor is doing a good job of that through the tuition freeze and other options he mentioned today.”

Reaction from UW System

UW System President Ray Cross says the System will work to continue to make college affordable. “The UW System is committed to ensuring access to an affordable, world-class education for Wisconsin families. We applaud the leadership of Governor Walker, Rep. Macco and Rep. Murphy and Senators Harsdorf and Marklein for advancing these proposals,” Cross said in a prepared statement. “The UW System is a dedicated partner with these leaders and the many others working to help build a talent pipeline that fuels individual opportunity and Wisconsin’s growth.”

The governor shared six legislative proposals focused on making higher education more affordable

• Deducting All Student Loan Interest – authored by Rep. John Macco and Sen. Howard Marklein, this legislation would eliminate any cap on the tax deduction for student loan interest, which would save student loan debt payers $5.2 million annually when it is fully phased in. This tax deduction would be the most generous of any state in the Midwest with an income tax and benefit roughly 32,000 Wisconsin taxpayers paying off student loans. This deduction will benefit middle class Wisconsinites with an average benefit of more than $200 annually for those making between $30,000 and $70,000.
• Increasing Wisconsin Grants for Technical Colleges – authored by Representative Dave Heaton and Senator Sheila Harsdorf, this legislation would increase needs-based Wisconsin grants by $1 million for technical college students in the biennium or $500,000 annually. This would benefit over 1,000 students throughout the state.
• Creating Grants for Students in Emergency Financial Need – authored by Rep. David Murphy and Sen. Howard Marklein, this legislation would provide $130,000 to UW System colleges and $320,000 to technical colleges to provide emergency grants to students. This approach has been credited with increasing the likelihood a student finishes a degree.
• Increasing Internships – authored by Rep. David Murphy and Sen. Howard Marklein, these two pieces of legislation would enhance internships, creating more pathways to employment by funding two positions within the Office of Skills Development at the Department of Workforce Development (DWD), as well as additional UW System positions. These new positions would work with employers and institutions throughout the state to build and grow relationships between higher education institutions and employers, so students can gain job skills, which will assist in filling open positions and connecting graduates to Wisconsin employers.
• Helping Students and Families to Make Informed Decisions – authored by Rep. David Murphy and Sen. Howard Marklein, this legislation would require all higher education institutions to provide financial literacy to their students within the first semester of their instruction.It would also require offering an associate’s degree or higher to annually mail cost, loan, and other financial information to students. This is modeled after an Indiana law that has been credited with reducing loans taken out by students.