Congresswoman Vicky Hartzler (MO-4) and the U.S. House have taken action to prevent an increase in student loan rates without a cost to taxpayers. The legislation pays for the proposal by offsetting the cost with money from a slush fund that is part of the Obama health care law.
"Once they graduate and start looking for work, students face the difficult task of repaying tens of thousands of dollars in student loans," said Hartzler. "Taking proactive steps to prevent the interest rate from doubling from 3.4 percent to 6.8 percent will ease the burden on so many young people."
"We find ourselves in this position now because of action taken by the Democrat-controlled Congress in 2007," continued Hartzler. "At that time the House temporarily scaled down interest rates on new subsidized loans to undergraduate students over four years from 6.8 percent to 3.4 percent. Republicans were critical of this approach, warning that the interest rate would jump back to 6.8 percent in July of 2012. But the temporary fix passed and must be addressed again today. I worked with leadership to make sure the rate would stay low and affordable for students going to college and am pleased to have contributed to passage of this bill."
"While the cost of an education is expensive, the major concern for so many students is the inability to find work after graduation," added Hartzler. "Reports show that half of our college graduates are either jobless or underemployed. Many graduates are moving back in with their parents. It is imperative that jobs be available for both college graduates entering the workforce and those who have lost their jobs and want to work. I remain committed to creating jobs."
Vicky Hartzler, who represents Missouri's Fourth Congressional District, serves on the House Agriculture Committee and the House Armed Services Committee.