[Congressional Record Volume 148, Number 56 (Tuesday, May 7, 2002)]
[Extensions of Remarks]
[Page E725]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                           STUDENT LOAN RATE

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                          HON. LORETTA SANCHEZ

                             of california

                    in the house of representatives

                          Tuesday, May 7, 2002

  Ms. SANCHEZ. Mr. Speaker, today I rise to speak out against the 
Administration's proposal to change the federal student loan 
consolidation rates.
  Last week it was reported that college loan rates could tumble to 
roughly 4 percent after July 1. A student with $20,000 in debt would be 
able to save $5,000 on a 20 year repayment plan with a fixed rate of 
4.13 percent.
  Just as millions of Americans are preparing for large savings on 
their student loans, the Administration decides to pull the rug out 
from under their feet by coming out with a proposal that prevents them 
from locking in low interest rates.
  It seems as though this Administration wants to prevent students from 
moving ahead, after falsely leading them to believe that they would not 
be left behind.
  Due to the efforts of Democrats in both bodies of Congress, the 
Administration was forced to withdraw their proposal. I am pleased that 
we were able to prevent this potentially devastating proposal. However, 
I am still angry that the Administration would try to finance their 
initiatives at the cost of students struggling to get ahead.
  I encourage my colleagues to oppose any future measures that would 
make it more difficult for America's students to afford a college 
education.

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