Tuition-free college bill introduced by Bernie Sanders, Pramila Jayapal

Seattle representative Pramila Jayapal and Vermont Senator Bernie Sanders want to make public colleges and universities tuition-free for families making under $125,000.

As an effort to reduce student debt, the two lawmakers announced this week that the legislation called the "College for All Act" was introduced in the U.S. Senate.

"It's unbelievable that America -- one of the wealthiest nations in the world -- refuses to invest in our young people's education. So, yesterday, Bernie Sanders and I announced the College for All Act," Japal wrote on her verified Facebook page on Tuesday.

Who benefits from the bill

In addition to eliminating tuition and fees at four-year public colleges and universities, the legislation would make community college tuition-free for all people.

Nationally, the average student takes on more than $30,000 in debt to get a bachelors degree.

Around 800,000 people in Washington state carry an average of $24,000 in student loan debt, according to Washington State Attorney General’s Office.

Sponsors of the bill believe the College for All Act would cut student loan interest rates in half.

The legislation ensures that rates for undergraduates never rise above 5 percent and that rates for non-undergraduate borrowers never rise above 8.25 percent, according to a fact sheet provided by Jayapal’s office. It would also allow Americans refinance student loans at the lowest interest rate possible.

The costs behind the bill

The estimated cost of the legislation: $600 billion.

Jayapal's office wrote in a news release that it would be paid for by a separate bill to tax "Wall Street speculation." Sanders described a speculation tax on Wall Street earlier this year as a small levy on every stock, bond or derivative that is sold in the United States.

Under the College for All Act, the federal government would cover 67 percent of the costs to eliminate tuition for eligible students; states and tribes would need to figure out the remaining 33 percent of the costs.

The legislation would provide $41 billion per year to states and tribes. To qualify for federal funding, states and tribes must requirements that aim to protect students and ensure quality education.

Action on the bill

Nearly a dozen lawmakers are co-sponsoring the bill with Jayapal and Sanders, who introduced it in the House on Monday.

The bill was referred to the Committee on Health, Education, Labor and Pensions for discussion.

The College for All Act would work as a bill amending the Higher Education Act, which has been rewritten eight times since its creation in 1965.

Congress is working on the next reauthorization of the Higher Education Act. Education advocates expect that college costs and student loan programs will be included in the final version.

Cox Media Group