[Congressional Record Volume 159, Number 48 (Thursday, April 11, 2013)]
[Senate]
[Pages S2591-S2592]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED (for himself, Mr. Franken, Ms. Stabenow, Mr. 
        Whitehouse, Mr. Sanders, and Mr. Brown):
  S. 707. A bill to amend the Higher Education Act of 1965 to extend 
the reduced interest rate for Federal Direct Stafford Loans; to the 
Committee on Health, Education, Labor, and Pensions.
  Mr. REED. Mr. President, once again, on July 1, millions of college 
students will see the interest rate double on their student loans from 
3.4 percent to 6.8 percent unless Congress takes action. Borrowers will 
pay an estimated $1,000 more in interest on their loans each year of 
repayment if Congress fails to act.
  Student loan debt is second only to mortgage debt for American 
families. Now is not the time to add to student loan debt by allowing 
the interest rate on need-based student loans to double. I am pleased 
to introduce the Student Loan Affordability Act with my colleagues 
Senator Al Franken, Senator Sheldon Whitehouse, Senator Debbie 
Stabenow, Senator Sherrod Brown, and Senator Bernie Sanders to maintain 
the current 3.4 percent interest rate for the next 2 years, as we work 
towards a long-term solution in the reauthorization of the Higher 
Education Act.
  Last Congress, we narrowly averted a doubling of the interest rate on 
need-based student loans. It took thousands of calls, letters, and 
rallies from students and parents across the country and our concerted 
effort to negotiate a bipartisan solution. However, we were only able 
to get a temporary, 1-year fix.
  The budget passed by the House Republicans assumes a doubling of the 
interest rate. In stark contrast, the budget resolution we passed last 
month accommodates legislation to keep rates low.
  We need to come together to develop long-term solutions to the 
growing burden of student loan debt, the rising cost of college, and 
the need to improve higher education outcomes so that students complete 
their degrees and get the full benefit of their investment in 
education. Everyone agrees that college costs are too high and climbing 
higher. Families will be priced out of a college education, even with 
grants and loans, if we do not take real action on curbing cost 
increases.
  What we can do right now is reassure students and families that we 
will not allow the interest rate to double this July at a time when 
interest rates are at historic lows.
  Student loan debt affects millions of Americans. Two-thirds of the 
class of 2011 graduated owing student loans, with an average debt of 
$26,000. Student loan debt has passed the $1 trillion mark--exceeding 
credit card debt. Moreover, the students and families we are trying to 
help with the Student Loan Affordability Act have demonstrated economic 
need. Indeed, approximately 60 percent of the dependent students who 
qualify for subsidized loans come from families with incomes of less 
than $60,000.

[[Page S2592]]

  The question before us is will we make the student loan debt burden 
worse by allowing interest rates to double or will we take action to 
protect low and moderate income students.
  We need to act fast. July 1 is only 81 days away. I urge all our 
colleagues to join us in supporting the Student Loan Affordability Act.
                                 ______