U.S. Rep. Todd Rokita, chairman of the Subcommittee on Early Childhood, Elementary, and Secondary Education, today helped secure passage of the Smarter Solutions for Students Act, which will result in lower interest rates for many students and provide a long-term solution to the student loan issue. The House passed the bill 221-198 with bipartisan support.
"The Smarter Solutions for Students Act provides relief and predictability for millions of students, families and taxpayers, and prevents subsidized Stafford loans from doubling on July 1st. This legislation will result in lower rates for many students, while harnessing the power of the free market to create a better, fairer system. It also protects students with a cap in a high-interest environment and allows them to take advantage of lower interest rates when available.
"The federal government's heavy involvement in student loans has driven up costs and caused great uncertainty for everyone involved. By setting interest rates, the government has engaged in price fixing -- and has done so badly.
"The solution is to get the federal government out of the student loan business, as we have done with today's legislation, and to continue encouraging institutions to manage tuition costs. Just this week, Purdue University announced that it would freeze tuition and cut fees for students at its West Lafayette campus. I commend president Mitch Daniels and the rest of Purdue's leadership and will continue to work with them to find positive solutions to address the cost of higher education," said Rokita.