[Congressional Record Volume 141, Number 86 (Tuesday, May 23, 1995)]
[House]
[Page H5385]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


 REMOVING IN-SCHOOL INTEREST SUBSIDY ON STUDENT LOANS SEEN AS FAIR AND 
                               NECESSARY

  (Mr. KNOLLENBERG asked and was given permission to address the House 
for 1 minute and to revise and extend his remarks.)
  Mr. KNOLLENBERG. Mr. Speaker, removing the in-school interest subsidy 
on student loans is one of the tough choices that must be made in order 
to balance the budget.
  With a national debt that exceeds $4.7 trillion, it is hard to 
justify saving a subsidy for students who can expect to earn 71 percent 
more over their lifetime than someone who just goes to high school.
  It is simply not fair to ask working Americans--who are struggling to 
make ends meet--to pay the interest payments on the student loans of 
future doctors and lawyers.
  Removing the in-school interest subsidy will not limit access to 
Government-backed student loans. Eligible students will still be able 
to borrow money to help pay for their education. And, no student will 
be asked to pay for their loans while they are in school. We are simply 
asking that they pay the full cost of the loan--after they graduate.
  Finally, we must keep in mind that college students will 
substantially benefit from a balanced budget. Balancing the budget will 
lower interest rates on student loans, result in more high-wage jobs, 
and allow students to keep more of their salaries once they begin 
working.
  Mr. Speaker, removing the in-school interest subsidy is both fair and 
necessary. And, it is time to start telling the truth about this 
proposal.


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