Tierney Statement on House Passage of Student Loan Proposal

Press Release

Congressman John Tierney, the only Massachusetts Member on the House Education and the Workforce Committee, released the below statement concerning Congress's passage of the Student Loan Certainty Act of 2013. The bill is not a responsible long term solution, and it locks in the unacceptable status quo with respect to the federal government using middle-class students and their families as a profit center. In fact, under current ten-year projections, the bill will result in an estimated $184 billion in profits.

"Along with Senator Elizabeth Warren, I have led the fight to find a fair, long-term student loan fix for our middle-class students and families," Congressman Tierney said. "We have championed sensible proposals that would keep interest rates low throughout a student's college education and stop the federal government from continuing to squeeze billions of dollars from our students. Unfortunately, Congress went in a different direction. Under the so-called Student Loan Certainty Act, interest rates are projected to balloon in just a few years. I fear the bill's positive impact is temporary and overstated, but its negative consequences will be lasting. It is regrettable that Congress acted to compromise on the future of our students' education opportunities and our economy for a short-sighted "fix.'

"While it is disheartening and frustrating that Congress missed this opportunity, I am committed to continuing my efforts to find real solutions. We need to address the long-term issue of how the federal government, together with higher education institutions, states, students and families, can lower college costs, and let young people enter and graduate from college at affordable prices. Working with both my Republican and Democratic colleagues, I am engaged in the process of reauthorizing the Higher Education Act, one that I hope will provide another opportunity to prevent interest rates from skyrocketing in the years ahead, to allow the 37 million current federal student loan borrowers to responsibly refinance, and to tie rates to the actual cost of student loans to the government. I will continue working to ensure that college is more affordable and accessible for all students," Congressman Tierney concluded.

Congressman Tierney has long spearheaded efforts to find a smart long-term plan to provide comprehensive student loan reform to our students and families. Earlier this year, he and Senator Reed (D-RI) authored legislation to keep interest rates down and allow current student loan borrowers to refinance. Additionally, he and Senator Warren (D-MA) introduced a short-term plan that would offer students and families the same interests rates offered to Wall Street Banks, while Congress worked out a better long-term deal.

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