Meehan: "About Time" Senate Acts on Student Loans

Press Release

WASHINGTON, DC --Rep. Patrick Meehan (PA-07) today issued the following statement after the House of Representatives adopted an agreement reached by the Senate to prevent the doubling of interest rates for many student loans. The provisions of the the agreement passed today are nearly identical to legislation passed by the House to avert a rate increase more than eight weeks ago.

On May 23rd, the House of Representatives adopted the Smarter Solutions for Students Act, which prevented a doubling of interest rates on federally-subsidized student loans. Due to Senate inaction, interest rates doubled from 3.4% to 6.8% on July 1st.

"The cost of a college education is already too high and families are struggling," said Rep. Meehan. "The rate increase would have cost a typical undergraduate with $25,000 in debt almost $3,000 over the life of the loan. The last thing they need is a higher monthly payment because of a classic Washington failure."

"The House passed a permanent fix to this perennial problem in May. It gets politicians out of the business of setting interest rates for students and it saves taxpayer dollars. The President himself endorsed a similar plan in his budget proposal. It's about time the Senate took action," Meehan said.

Under the agreement, student loan interest rates will be permanently tied to market rates -- not the whims of Congress. The agreement includes caps to protect student from high rates.

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