Congresswoman Chellie Pingree said today that House leaders should act quickly to pass a bill preventing a doubling of interest rates on student loans next week. Senate negotiators have reportedly come up with an agreement on preventing the increase, but House Republicans haven't said whether they will allow a vote on the compromise.
"Students and their families could owe thousands of dollars more starting Sunday if we don't do anything to stop a doubling of interest rates," Pingree said. "Honestly, we should have voted on this months ago but House leaders have refused to bring a reasonable bill to thefloor."
Without action, rates on federally subsidized student loans will double for nearly 7.5 million borrowers next week. Pingree has co-sponsored a bill that would make the low interest rates permanent, but House Republicans have refused to bring the bill up for a vote.
"Americans owe more on student loans than they do on credit cards," Pingree said. "And if Congress lets the interest rate double on July 1st, borrowers are going to have to come up with thousands of dollars more just to pay off that debt. At a time when families are already struggling to make ends meet, this is the last thing they need."
If Congress doesn't act, interest rates on federal student loans will double from 3.4% to 6.8% on July 1st.