Congressman Cleaver Calls Student Loan Issue "Washington Dysfunction at its Worst"

Press Release

Today is the day millions of students and families across the country have dreaded -- and pleaded with Congress not to let come. But it has.

Today is the day, student loan rates double, leaving students paying 6.8% on their loans instead of 3.4%.

"Congress can act overnight to bail out the nation's big banks," said U.S. Representative Emanuel Cleaver, II. "But when it comes to making sure young people and students across America are able to stay in the classroom -- we can't work together? This is obscene."

Congress is in recess this week, meaning no action will be taken to stop the rate increase, set to go into effect today. It is estimated that every student taking out a federal loan will pay an average of $1,000 more each year in loan repayment. Already, Americans now owe more than $1 TRILLION in student loans.

"Hardworking families throughout Missouri's Fifth District deserve better than this," said Congressman Cleaver. "The lack of action from Congress is putting a college education out of reach for millions of students, undermining our economy, and weakening our middle class."

The cost of college has jumped almost 30% in the last decade. And now the loan increase is expected to double for 7.4 million students. For the first time in our country's history, student loan debt has now surpassed credit card debt.

Congressman Cleaver is a cosponsor of HR 1595, the Student Loan Relief Act of 2013, which would free the interest rate on these loans at 3.4% for the next two years. It is unclear whether this legislation will be voted on by the House of Representatives when they return from recess next week.

Source