[Congressional Record Volume 153, Number 7 (Friday, January 12, 2007)]
[Senate]
[Pages S515-S516]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN (for himself and Mr. Kennedy):
  S. 282. A bill to-amend the Higher Education Act of 1965 to reduce 
over a 5-year period the interest rate on certain undergraduate student 
loans; to the Committee on Health, Education, Labor, and Pensions.
  Mr. DURBIN. Mr. President, I rise today to urge my colleagues to 
support the ``College Student Relief Act.'' In 1958, spurred on by the 
launch of the Russian satellite, Sputnik, Congress passed the National 
Defense Education Act in order to ensure that through education, the 
United States would stay ahead of the Soviet Union in the space race. 
Because of the low interest loans offered through the National Defense 
Education Act, countless students were able to obtain a college 
education and help move America forward. I could never have attended 
Georgetown University and law school were it not for the government 
loans.
  It is unquestionable that higher education plays a critical role in 
the future of our children. Over the course of a lifetime, a college 
graduate will earn over $1 million more than those without college 
degrees. In addition to the individual benefits of a college education, 
investing in and producing more college-educated Americans is vital to 
our Nation's growth. Economists estimate that the increase in the 
education level of the United States labor force between 1915 and 1999 
directly resulted in at least 23 percent of the overall growth in U.S. 
productivity. To keep America at the economic forefront in the 21st 
Century, we must recognize the value of investing in higher education 
and provide students with the assistance they need so that they can 
compete in the global economy.
  As college costs continue to skyrocket, attaining a college education 
is becoming an even bigger hurdle for many American students. Millions 
of eligible students never even make it to college because of financial 
barriers. Over the last five years, tuition, fees, room and board at 
four-year public colleges and universities increased by 42 percent. 
More than two-thirds of four- year college students now borrow to pay 
for school, and their average debt more than doubled between 1993 and 
2004. According to the Congressional Advisory Committee on Student 
Financial Assistance, financial barriers will prevent 4.4 million high 
school graduates from attending a four-year public college over the 
next decade, and prevent another two million eligible students from 
attending college at all.
  Last year, Republicans missed an opportunity to prevent higher 
student loan interest rates from going into effect. On July 1, 2006, 
student loan interest rates went from a 5.3 percent variable rate to a 
6.8 percent fixed rate for student borrowers. We can address this 
situation and take the first step towards helping millions of college 
students across the Nation realize the American dream--achieving a 
college education.
  That's why I'm introducing the College Student Relief Act of 2007. 
The bill cuts interest rates on subsidized student loans in half and 
will help lower the interest rates for 5.5 million college students. 
The bill phases in interest rate cuts over five years, from a 6.8 
percent fixed rate to a 3.4 percent fixed

[[Page S516]]

rate for undergraduate borrowers of new subsidized student loans. Once 
fully implemented, these cuts will save the typical borrower--with 
$13,800 in need-based loan debt--approximately $4,400 in interest costs 
over the life of his or her loan.
  Smart, hard-working kids deserve a chance to go as far as their 
talents will take them; however, large education debt changes the 
future in ways that cannot be quantified. Career plans are changed. 
Lifestyles are restricted. Home and auto purchases are put on hold. 
Family plans may be delayed to accommodate debt payments.
  Let me share a few stories with you that illustrate the effects of 
carrying large education debt. When Stacie Odhner-Sibley and her 
husband made the decision ten years ago that she would go back to 
school and obtain her Bachelor's degree in order to provide a better 
future for their family, she was the first in her family to go to 
college. Fast forward to today. Stacie now has her Bachelor's degree 
and a Master's degree in School Guidance and Counseling. While this is 
the happy part of Stacie's story, the sad part is that Stacie and her 
husband are considering uprooting their three children and selling 
their home because they can't afford both student loans and a mortgage. 
The saddest part of Stacie's story is that the money her family would 
realize from the sale of their home won't even pay off the student 
loans. It will only be enough to take off some of the financial 
pressure they otherwise would be feeling.
  Katie Miller is a student at Southern Illinois University at 
Edwardsville. Katie's story is not uncommon. She works part-time and 
her parents are unable to provide her with any financial assistance. 
She is extremely grateful for the financial aid she receives and 
recognizes that without it, she would not be able to go to school even 
though she is struggling to pay for food, insurance and other basic 
necessities.
  Summer Boyd is an elementary teacher in Decatur, IL. She graduated 
from Millikin University in 2003 with $65,000 in student loans. As with 
Katie, Summer's parents could not afford to help pay for her college 
education. So, for the next 25 years, Summer will be paying over $500 
each month toward her student loans. She doesn't mind paying for her 
education; however, the heavy burden of her student loan debt is 
already affecting her future plans. She and her husband want to have 
children, but for the time being, they must continue to scrape by each 
month and can only hope to someday be able to afford children.
  Young people like Stacie, Katie and Summer should not face such high 
penalties because they had the desire and determination to pursue 
higher education.
  An investment in our children's education is an investment in our 
Nation's future. We must do what we can today to ensure that America 
remains a global leader in the future. Our Nation will be richer--not 
just economically, but also culturally and socially--for having given a 
higher priority to making college affordable.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 282

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``College Student Relief Act 
     of 2007''.

     SEC. 2. APPLICABLE INTEREST RATES.

       Section 427A(l) of the Higher Education Act of 1965 (20 
     U.S.C. 1077a(l)) is amended--
       (1) in paragraph (1), by inserting ``and subject to 
     paragraph (4)'' after ``Notwithstanding subsection (h)''; and
       (2) by adding at the end the following:
       ``(4) Special rule for subsidized undergraduate loans.--
     Notwithstanding subsection (h), with respect to any loan 
     made, insured, or guaranteed under this part (other than a 
     loan made pursuant to section 428B, 428C, or 428H) to or for 
     an undergraduate student for which the first disbursement is 
     made on or after--
       ``(A) July 1, 2007, the applicable rate of interest shall 
     be 6.12 percent on the unpaid principal balance of the loan;
       ``(B) July 1, 2008, the applicable rate of interest shall 
     be 5.44 percent on such balance;
       ``(C) July 1, 2009, the applicable rate of interest shall 
     be 4.76 percent on such balance;
       ``(D) July 1, 2010, the applicable rate of interest shall 
     be 4.08 percent on such balance; and
       ``(E) July 1, 2011, the applicable rate of interest shall 
     be 3.40 percent on such balance.''.
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