[Congressional Record Volume 159, Number 42 (Thursday, March 21, 2013)]
[Extensions of Remarks]
[Page E356]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




    INTRODUCING THE STUDENT LOAN FAIRNESS ACT TO COMBAT STUDENT DEBT

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                            HON. KAREN BASS

                             of california

                    in the house of representatives

                        Thursday, March 21, 2013

  Ms. BASS. Mr. Speaker, I rise today to introduce the Student Loan 
Fairness Act to address the crippling issue of student loan debt and 
the debilitating impact that this debt is having on American students 
and their ability to contribute to the growth of the United States 
economy.
  As you may know, total outstanding student loan debt in America has 
surpassed the $1 trillion mark. It has outpaced credit card debt, auto 
debt, and is second only to mortgage debt in America. In fact, a recent 
study shows that student loan debt is the only type of consumer debt in 
America that has actually increased during the ``Great Recession'' and 
the problem only continues to worsen. As a result of these debts, 
millions of Americans are not buying cars, purchasing homes, starting 
businesses, or otherwise realizing the American Dream.
  We need a fair and simple federal student loan repayment system which 
seeks to alleviate the financial burden of student loan debt on college 
graduates and support them as they begin their careers and lives.
  That is why I rise today to introduce the Student Loan Fairness Act. 
This new legislation combines two bills from the 112th Congress: Rep. 
Hansen Clarke's Student Loan Forgiveness Act (H.R. 4170), as well as my 
own Graduate Success Act (H.R. 5895).
  The Student Loan Fairness Act creates a new ``10-10'' standard for 
student loan repayment and establishes it as the new standard repayment 
plan for students taking out federal loans. This bill also combats the 
crushing interest rates of public and private loans, sends a lifeline 
to student borrowers who have fallen on difficult times, and promotes 
financial responsibility in higher education. In addition, our bill 
permanently caps the interest rate for all federal student loans at 
3.4%, which will ultimately eliminate the need to enact temporary 
measures every year to prevent rates from doubling. This gives students 
more certainty and the comfort of knowing their interest rates will not 
go up every year.
  Congress needs to act now to help our students. The longer we wait to 
take action, the more we undermine their future and prevent students 
from becoming the people they dream of being and the workforce our 
economy needs.

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