College Opportunity and Affordability Act of 2007

Floor Speech

Mrs. DAVIS of California. Mr. Chairman, last year Congress passed a budget reconciliation bill that allows service members to get a deferment on their student loans when they are activated, but that particular deferment only applies to repayment of the principle and existing interest on these loans. It does not prevent new interest from accruing while our service members are on active duty.

One Reservist told me that while he was granted a deferment on his loan, he was told that the interest would continue to accrue while he was away and would be added on to his loan when he returned. Service members such as this Reservist already have enough to worry about when they are called to active duty without this added burden.

This amendment will cover all active duty service members, including Reserve units and the National Guard.

According to CRS estimates, this will help the average service member save between $1,200 and $1,500 over the course of a 12- to 15-month activation period, with even more savings for those activated for longer periods.

In addition, and the best part, the CBO scored this amendment and found that it will not cost the American taxpayer any significant amount.

I urge my colleagues to support this amendment.

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