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RESOLUTION URGING THE UNITED STATES CONGRESS TO ENACT THE DYNAMIC REPAYMENT ACT OF 2014, S. 2612, OR SIMILAR LEGISLATION THAT WOULD REFORM THE CURRENT STUDENT LOAN SYSTEM TO IMPROVE INCOME-BASED REPAYMENT OPTIONS FOR FEDERAL STUDENT LOANS

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WHEREAS, on July 1, 2013 the interest rate of federal subsidized student loans�federal student loans offered to those with financial need�would have doubled from 3.4 percent to 6.8 percent without action by Congress; and
WHEREAS, on July 16, 2013, this Board adopted Resolution No. R-637-13, which urged the U.S. Congress and U.S. Department of Education to reform the current student loan system, through stemming the rising cost of college, reducing interest rates on all federal student loans, and alleviating the burden of current student loan debt through refinancing and better consumer protection, a copy of which is attached and incorporated by reference; and
WHEREAS, on July 31, 2013, the U.S. Congress passed the Bipartisan Student Loan Certainty Act of 2013, tying federal student loan rates to financial markets; and
WHEREAS, on July 1 2014, undergraduate Stafford loan interest rates increased from 3.86 percent to 4.66 percent; and
WHEREAS, on July 16, 2014, U.S. Senators Mark Warner (D � Virginia) and Marco Rubio (R � Florida) introduced the Dynamic Repayment Act of 2014, S. 2612, which would consolidate, simplify and improve income-based repayment options for federal student loans; and
WHEREAS, under the Dynamic Repayment Act of 2014:
� student loan payments would be limited to 10 percent of borrower paychecks;
� student loan forgiveness would be tiered by debt load;
� interest would not compound during repayment of student loans;
� students would have a single loan, rather than a complicated array of loans, subsidies, deferments, forbearance and repayment options; and

WHEREAS, student loan debt has eclipsed credit card debt as the second largest financial obligation of United States households, totaling over $1.2 trillion; and
WHEREAS, more than 40 million Americans hold student loan debt; and
WHEREAS, existing income-based student loan repayment programs are underutilized because the system is too complicated; and
WHEREAS, nearly 15 percent of student loan borrowers default on their debt within three years of beginning repayment; and
WHEREAS, defaulting on student loans can be ruinous for the borrower and is also expensive for the government,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board:
Section 1. Urges the United States Congress to enact the Dynamic Repayment Act of 2014, S. 2612, or similar legislation that would reform the current student loan system to improve income-based repayment options for federal student loans.
Section 2. Directs the Clerk of the Board to transmit a certified copy of this resolution to the members of the Florida Congressional Delegation, U.S. Senator Mark Warner, and U.S. Senator Marco Rubio.
Section 3. Directs the County's federal lobbyists to advocate for the passage of the legislation as set forth in Section 1 above, and authorizes and directs the Office of Intergovernmental Affairs to amend the 2014 Federal Legislative Package to include this item and to include this item in the 2015 Federal Legislative Package when it is presented to the Board.