Congressman Steven Palazzo (R-MS) released the following statement after supporting House passage of H.R. 1911, the Smarter Solutions for Students Act.
"When Washington tried to solve the student loan problem a few years ago, it only succeeded in making things worse. Measures that were meant to provide temporary relief have become a yearly, looming deadline when students' loan rates hang in the balance. This is an irresponsible and unfair way to treat the millions of low and middle-income students who depend on this assistance to obtain a higher education. This reform package provides a long-term solution that students and parents can count on."
The Smarter Solutions for Students Act would provide certainty for students by replacing the current system by which Congress annually mandates rates with a longer-term system that ties rates to the 10-year Treasury Note. It would also protect borrowers by capping interest rates on Stafford and PLUS loans.
Starting in 2007, Democrats in charge of Congress passed language that would artificially cut loan rates in half over four years. Once that language expired in July 2012, a one-year extension was granted to save students from doubling rates. On July 1, 2013, student loan rates are once again set to double if Congress does not enact long-term solutions.