Boswell Briefing: Freeze Student Loan Rates for America's Future
Statement
Dear Fellow Iowan,
As college tuitions continue to increase all over the country -- and fewer of today's graduates are finding employment -- there is a debate raging on in Washington that could result in a drastic hike in what middle class college students pay in their student loans.
One of the many ways I fought to ease the burden on students and their families was by helping to lower the interest rates on need-based student loans to 3.4 percent to make them more manageable through the College Cost Reduction and Access Act, which was enacted in 2007.
But some in Congress believe this should end.
Come July 1, interest rates on need-based student loans are set to double from the current rate of 3.4 percent to 6.8 percent, which will directly impact millions of low- and middle-income students nationwide, including a quarter of a million students right here in Iowa.
The result of a doubling in the interest rate would have a serious impact on students, their parents, and any plans they've made to finance a post-secondary education. Over a typical 20-year repayment of the maximum Stafford loan, the higher interest rate would increase the borrowing cost by $11,000. This is unacceptable and would make a college degree unattainable for many young people.
Unfortunately, this unnecessary threat to our students is the result of the House GOP's budget priorities. They falsely claim the country cannot afford keeping the interest rates low on student loans. The reality is, the country cannot afford raising them. Making college affordable, educating young Americans, is how we keep our country competitive in today's global economy. If today's students cannot afford to go to college, businesses will not have the skilled workers they require to be successful and positively impact our economy.
This should not be a partisan issue, and in many ways it isn't. In fact, even the GOP's presumptive nominee for president agrees with President Obama and Democrats in the House and Senate that interest rates should be left alone for the benefit of our students and their families.
Now is the time to come together, do the right thing and stand up for America's students.
Sincerely,
Leonard L. Boswell
Member of Congress
Source