[Congressional Record Volume 153, Number 23 (Wednesday, February 7, 2007)]
[Senate]
[Page S1711]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. CLINTON (for herself, Ms. Mikulski, Mr. Kerry, and Mr. 
        Lieberman):
  S. 511. A bill to provide student borrowers with basic rights, 
including the right to timely information about their loans and the 
right to make fair and reasonable loan payments, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mrs. CLINTON. Mr. President, I rise today to introduce legislation to 
give rights to student borrowers. The Student Borrower Bill of Rights 
Act will provide student borrowers with five basic rights to protect 
them when trying to repay their loans.
  Students are borrowing now more than ever to pay for higher 
education. Need-based grant aid has stagnated while college costs have 
grown, resulting in more students borrowing and at higher levels. In 
1993, less than one-half of students graduating from 4-year colleges 
and universities had student loans. Now two-thirds are faced with this 
debt.
  Unlike other debt, young people take out student loans to invest in 
themselves. Because these loans help to pay for college, student loans 
can help people earn more money over the course of their lifetimes and 
offer students greater choices in their careers. Student borrowers must 
take the responsibility of repaying their debt seriously so that future 
generations of students can have the chance to invest in themselves.
  However, too many borrowers in New York, and around the country, are 
overly burdened or treated unfairly as they repay their student loans. 
That is why I am introducing the Student Borrower's Bill of Rights Act.
  This bill will make it easier for students to repay loans and give 
them a basic set of enforceable rights. This bill would give student 
borrowers the right to fair monthly payments that do not exceed a 
percentage of their incomes, as well as access to fair interest rates 
and fees. This bill would also give students the right to shop in a 
free marketplace for their lender and to borrow without exploitation. 
Finally, the bill will give students access to better information about 
their loans to provide students with better options during repayment.
  The unfortunate truth is that student loan debt may even prevent 
borrowers from pursuing a higher degree. According to the Nellie Mae 
Corporation, 40 percent of college graduates cite alarming student loan 
debt as the reason for not pursuing a graduate degree. Most 
disturbingly, the burden of student loan debt alone can force graduates 
out of important, but low-paying professions, such as social workers, 
teachers and police officers. Our Nation cannot remain competitive in 
the global economy if these trends continue.
  I am happy to report that two of the provisions from the Student 
Borrower Bill of Rights Act of the 109th Congress were enacted into law 
through the Emergency Supplemental Appropriations Act for Defense 2006. 
These provisions, a repeal of the single holder rule and consolidation 
between loan programs, will enable borrowers to choose lenders with 
acceptable income-sensitive repayment terms when consolidating student 
loans.
  We need to make sure that student loans do not prevent students from 
following their dreams. It is in our Nation's economic interest to 
provide student borrowers with effective rights to make repayment of 
student loans easier.
  The rights found in my bill are long overdue. I urge my colleagues to 
join me in supporting the Student Borrower Bill of Rights.
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