[Congressional Record Volume 159, Number 112 (Wednesday, July 31, 2013)]
[House]
[Pages H5214-H5221]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




             BIPARTISAN STUDENT LOAN CERTAINTY ACT OF 2013

  Mr. KLINE. Mr. Speaker, I move to suspend the rules and concur in the 
Senate amendment to the bill (H.R. 1911) to amend the Higher Education 
Act of 1965 to establish interest rates for new loans made on or after 
July 1, 2013, to direct the Secretary of Education to convene the 
Advisory Committee on Improving Postsecondary Education Data to conduct 
a study on improvements to postsecondary education transparency at the 
Federal level, and for other purposes.
  The Clerk read the title of the bill.
  The text of the Senate amendment is as follows:
  Senate amendment:
       Strike all after the first word and insert the following:

     1. SHORT TITLE.

       This Act may be cited as the ``Bipartisan Student Loan 
     Certainty Act of 2013''.

     SEC. 2. INTEREST RATES.

       (a) Interest Rates.--Section 455(b) of the Higher Education 
     Act of 1965 (20 U.S.C. 1087e(b)) is amended--
       (1) in paragraph (7)--
       (A) in the paragraph heading, by inserting ``and before 
     july 1, 2013'' after ``on or after july 1, 2006'';
       (B) in subparagraph (A), by inserting ``and before July 1, 
     2013,'' after ``on or after July 1, 2006,'';
       (C) in subparagraph (B), by inserting ``and before July 1, 
     2013,'' after ``on or after July 1, 2006,''; and
       (D) in subparagraph (C), by inserting ``and before July 1, 
     2013,'' after ``on or after July 1, 2006,'';
       (2) by redesignating paragraphs (8) and (9) as paragraphs 
     (9) and (10), respectively; and
       (3) by inserting after paragraph (7) the following:
       ``(8) Interest rate provisions for new loans on or after 
     july 1, 2013.--
       ``(A) Rates for undergraduate fdsl and fdusl.--
     Notwithstanding the preceding paragraphs of this subsection, 
     for Federal Direct Stafford Loans and Federal Direct 
     Unsubsidized Stafford Loans issued to undergraduate students, 
     for which the first disbursement is made on or after July 1, 
     2013, the applicable rate of interest shall, for loans 
     disbursed during any 12-month period beginning on July 1 and 
     ending on June 30, be determined on the preceding June 1 and 
     be equal to the lesser of--
       ``(i) a rate equal to the high yield of the 10-year 
     Treasury note auctioned at the final auction held prior to 
     such June 1 plus 2.05 percent; or
       ``(ii) 8.25 percent.
       ``(B) Rates for graduate and professional fdusl.--
     Notwithstanding the preceding paragraphs of this subsection, 
     for Federal Direct Unsubsidized Stafford Loans issued to 
     graduate or professional students, for which the first 
     disbursement is made on or after July 1, 2013, the applicable 
     rate of interest shall, for loans disbursed during any 12-
     month period beginning on July 1 and ending on June 30, be 
     determined on the preceding June 1 and be equal to the lesser 
     of--
       ``(i) a rate equal to the high yield of the 10-year 
     Treasury note auctioned at the final auction held prior to 
     such June 1 plus 3.6 percent; or

[[Page H5215]]

       ``(ii) 9.5 percent.
       ``(C) PLUS loans.--Notwithstanding the preceding paragraphs 
     of this subsection, for Federal Direct PLUS Loans, for which 
     the first disbursement is made on or after July 1, 2013, the 
     applicable rate of interest shall, for loans disbursed during 
     any 12-month period beginning on July 1 and ending on June 
     30, be determined on the preceding June 1 and be equal to the 
     lesser of--
       ``(i) a rate equal to the high yield of the 10-year 
     Treasury note auctioned at the final auction held prior to 
     such June 1 plus 4.6 percent; or
       ``(ii) 10.5 percent.
       ``(D) Consolidation loans.--Notwithstanding the preceding 
     paragraphs of this subsection, any Federal Direct 
     Consolidation Loan for which the application is received on 
     or after July 1, 2013, shall bear interest at an annual rate 
     on the unpaid principal balance of the loan that is equal to 
     the weighted average of the interest rates on the loans 
     consolidated, rounded to the nearest higher one-eighth of one 
     percent.
       ``(E) Consultation.--The Secretary shall determine the 
     applicable rate of interest under this paragraph after 
     consultation with the Secretary of the Treasury and shall 
     publish such rate in the Federal Register as soon as 
     practicable after the date of determination.
       ``(F) Rate.--The applicable rate of interest determined 
     under this paragraph for a Federal Direct Stafford Loan, a 
     Federal Direct Unsubsidized Stafford Loan, or a Federal 
     Direct PLUS Loan shall be fixed for the period of the 
     loan.''.
       (b) Effective Date.--The amendments made by subsection (a) 
     shall take effect as if enacted on July 1, 2013.

     SEC. 3. BUDGETARY EFFECTS.

       (a) Paygo Scorecard.--The budgetary effects of this Act 
     shall not be entered on either PAYGO scorecard maintained 
     pursuant to section 4(d) of the Statutory Pay- As-You-Go Act 
     of 2010.
       (b) Senate Paygo Scorecard.--The budgetary effects of this 
     Act shall not be entered on any PAYGO scorecard maintained 
     for purposes of section 201 of S. Con. Res. 21 (110th 
     Congress).

     SEC. 4. STUDY ON THE ACTUAL COST OF ADMINISTERING THE FEDERAL 
                   STUDENT LOAN PROGRAMS.

       Not later than 120 days after the date of enactment of this 
     Act, the Comptroller General of the United States shall--
       (1) complete a study that determines the actual cost to the 
     Federal Government of carrying out the Federal student loan 
     programs authorized under title IV of the Higher Education 
     Act of 1965 (20 U.S.C. 1070 et seq.), which shall--
       (A) provide estimates relying on accurate information based 
     on past, current, and projected data as to the appropriate 
     index and mark-up rate for the Federal Government's cost of 
     borrowing that would allow the Federal Government to 
     effectively administer and cover the cost of the Federal 
     student programs authorized under title IV of the Higher 
     Education Act of 1965 (20 U.S.C. 1070 et seq.) under the 
     scoring rules outlined in the Federal Credit Reform Act of 
     1990 (2 U.S.C. 661 et seq.);
       (B) provide the information described in this section in a 
     way that separates out administrative costs, interest rate, 
     and other loan terms and conditions; and
       (C) set forth clear recommendations to the relevant 
     authorizing committees of Congress as to how future 
     legislation can incorporate the results of the study 
     described in this section to allow for the administration of 
     the Federal student loan programs authorized under title IV 
     of the Higher Education Act of 1965 (20 U.S.C. 1070 et seq.) 
     without generating any additional revenue to the Federal 
     Government except revenue that is needed to carry out such 
     programs; and
       (2) prepare and submit a report to the Committee on Health, 
     Education, Labor, and Pensions of the Senate and the 
     Committee on Education and the Workforce of the House of 
     Representatives setting forth the conclusions of the study 
     described in this section in such a manner that the 
     recommendations included in the report can inform future 
     reauthorizations of the Higher Education Act of 1965 (20 
     U.S.C. 1001 et seq.).

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Minnesota (Mr. Kline) and the gentleman from California (Mr. George 
Miller) each will control 20 minutes.
  The Chair recognizes the gentleman from Minnesota.


                             General Leave

  Mr. KLINE. Mr. Speaker, I ask unanimous consent that all Members may 
have 5 legislative days in which to revise and extend their remarks on 
H.R. 1911.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Minnesota?
  There was no objection.

                              {time}  1615

  Mr. KLINE. Mr. Speaker, I yield myself as much time as I may consume.
  I rise today in strong support of the Bipartisan Student Loan 
Certainty Act, also known as the Smarter Solutions for Students Act.
  After many weeks of delay, I'm pleased we finally have a bipartisan 
agreement to address the student loan interest rate problem. My 
colleagues and I have been fighting for months for a long-term, market-
based solution that will serve students and taxpayers, and the 
legislation before us today will do just that.
  As you can see in this chart, much like the Smarter Solutions for 
Students Act approved by the House back in May, the Bipartisan Student 
Loan Certainty Act will tie student loan interest rates to the market, 
taking away the uncertainty that comes with allowing Congress to 
arbitrarily set rates.
  Similarly, both bills provide a permanent fix to the interest rate 
problem, granting students the certainty they need to make smart, 
fiscally responsible investments in their education.
  And most importantly, this legislation, like its predecessor, doesn't 
unfairly penalize taxpayers. Unlike some half-baked proposals that 
would put taxpayers on the hook for billions of dollars to pay for 
artificially low student loan interest rates, both the House-passed 
Smarter Solutions for Students Act and the Bipartisan Student Loan 
Certainty Act will generate a small amount of savings over 10 years.
  Reports confirm the similarities between the House bill and its 
Senate companion. MSNBC has said the House bill is ``very similar'' to 
the Senate proposal. The Minneapolis Star Tribune recently noted the 
Senate compromise ``closely resembles'' the House-passed Smarter 
Solutions for Students Act, and the Associated Press called the 
differences between the two proposals ``relatively small.''
  While I'm happy with the legislation we will consider today, I'm 
disappointed it took us so long to get to this point. Students and 
their families got roped into an all-too-tumultuous debate and were 
forced to deal with the fallout when Congress was unable to reach an 
agreement to prevent subsidized Stafford loan interest rates from 
doubling on July 1.
  By getting politicians out of the business of setting student loan 
interest rates, the measure we consider today will protect students 
from future uncertainty. I applaud my colleagues on the other side of 
the aisle for finally recognizing this long-term, market-based proposal 
for what it is: a win for students and taxpayers.
  Mr. Speaker, I strongly urge my colleagues to join me in supporting 
H.R. 1911.
  I reserve the balance of my time.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield myself 4 
minutes.
  Mr. Speaker, I rise in support of the Bipartisan Student Loan 
Certainty Act. It has been nearly a month since interest rates on 
student loans were allowed to double on millions of our neediest 
students, but thanks to the bipartisan negotiations in the Senate, we 
now have a solution that provides real relief. And I want to thank 
Senator Durbin, Senator Harkin, Senator Manchin, and Senator King for 
all of their work on this effort.
  Thanks to this legislation, over the next 5 years, borrowers across 
the country will save $25 billion in interest payments. In my home 
State of California, this bill will cut the cost of college for more 
than 550,000 students this coming academic year. It was worth the wait.
  When we started work on this issue, I said that any long-term 
solution to student loan interest rates must help, not harm the 
students or their families, must not make college more expensive, and 
it must protect students in the future from spiking interest rates. I 
believe that this bipartisan bill accomplishes that goal.
  It locks in interest rates for borrowers when they sign on to their 
loans; it provides a reasonable cap to protect students from rising 
interest rates; and it rolls back the doubling of interest rates, 
saving students and families real money right now.
  Today's bipartisan student loan deal stands in stark contrast to the 
partisan bill passed by the House majority in May. The bill would have 
made college more expensive by nearly $4 billion to students and their 
families. It would have subjected students to a bait-and-switch scheme. 
It offered students teaser rates that balloon annually, leaving 
students deeper in debt and guessing what they will owe.
  If you look at this chart, you will see that, under the bipartisan 
agreement we're voting on today, it will cost students about $11,363. 
The current law raises the cost to $14,000, and the bill that passed 
the House, the Republican

[[Page H5216]]

bill, was $16,400. So it's been well worth students to have this 
disagreement, to have this wait so that we could save this kind of 
money for students and families.
  Next year's freshmen who borrow a maximum amount of subsidized and 
unsubsidized Stafford loans over 5 years would have paid $5,000 more in 
interest rates under the House Republican plan than under today's 
bipartisan compromise, and nearly $2,000 more than if we did nothing.
  The House majority's solution wasn't a solution at all. Their 
approach was best summed up by the chair of the Higher Education 
Subcommittee who recently said, ``It is not the role of the Congress to 
make college affordable or accessible.''
  I couldn't disagree more. That statement explains why their bill 
piled debt on the backs of students rather than trying to lighten the 
load.
  The Senate bill before us today takes the opposite approach. It saves 
students and families money.
  I understand the concerns that some have raised by this solution. 
While it provides real relief for the next few years, it does not solve 
the long-term student debt crisis. We have much more work to do to 
address the underlying cost of college, and we must remain on guard 
against any unacceptable rise in interest rates.
  In the meantime, we now have a bill that will make a positive 
difference to families struggling to pay for college.
  Today, I ask the Republican majority to drop their support for the 
original House bill that was so devastating to students and families 
and, instead, support this bipartisan bill that delivers real interest 
rate relief for millions of Americans.
  I reserve the balance of my time.
  Mr. KLINE. Mr. Speaker, I yield 4 minutes to the gentlewoman from 
North Carolina (Ms. Foxx), the chair of the Higher Education 
Subcommittee.
  Ms. FOXX. Mr. Speaker, I thank the chairman for yielding time.
  I rise in support of the Smarter Solutions for Students Act, renamed 
as the Bipartisan Student Loan Certainty Act by the Senate. It's about 
time that bipartisanship on this issue won the day in Washington.
  Earlier this year, my colleagues and I warmly welcomed the 
President's ideas to settle how student loan interest rates are 
calculated. Referencing his plan and his premise that student loan 
interest rates should be permanently free of politics and set using 
market interest rates, we introduced, and a bipartisan House majority 
passed, the Smarter Solutions for Students Act in May, well before 
rates were scheduled to double on July 1.
  Our friends in the Senate were on a much different schedule. Rather 
than immediately building on the striking similarities between 
President Obama's initial proposal and the House Republican solution, 
Senate Democrats chose infighting over completing this important work.
  July 1 came and went without any agreement from the Senate. Rates 
doubled.
  But advocates of common sense and bipartisanship made a better case. 
Last week, Senate Democrats finally chose to support a permanent, 
market-based solution much like what the President had originally 
requested and practically identical to our Smarter Solutions for 
Students Act.
  Campaign promises and political posturing should not play a role in 
the calculation of student loan interest rates. As we've seen, 
Washington's involvement in the rate-setting equation is a recipe for 
uncertainty and confusion. Borrowers deserve better.
  The Bipartisan Student Loan Certainty Act will apply predictable, 
market-based interest rates to all Federal Stafford and PLUS loans, 
ensuring that student and parent borrowers will be able to capitalize 
with certainty on low rates while being shielded from high rates by 
specified caps.
  From personal experience, I know that paying for college is hard 
work. It's getting harder as tuition and fees increase, and the vast 
majority of American households are feeling that pressure.
  The need for solutions to help ease the challenge of college 
affordability is especially acute in today's jobless economy. Many 
recent graduates took out loans with the expectation that they would be 
able to find a job to pay off their debt. Now, many find themselves 
among the 53 percent of their peers struggling with un-or 
underemployment.
  Like our colleagues across the aisle, we want every student to have 
the necessary, honest information they need to make an informed 
decision about the financial obligations they voluntarily assume, and 
we want taxpayer subsidies for higher education to be well-spent, not 
wasted.
  Now, with interest rates settled permanently for students and 
taxpayers, the Higher Education Subcommittee I chair will continue to 
look for and promote solutions to help bring clarity to college costs 
for all students and families considering the investment.
  Students, families, and taxpayers deserve a long-term student loan 
solution, not more can-kicking from Washington. The Bipartisan Student 
Loan Certainty Act, like the House-passed Smarter Solutions for 
Students Act, puts an end to temporary fixes and campaign promises that 
have failed to strengthen our Nation's student loan system. This 
legislation offers students simplicity and predictability as they 
prepare to pay for college.
  The American people deserve the clarity, certainty, and protection 
guaranteed by this legislation. I urge a ``yes'' vote.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield myself 30 
seconds.
  I would not want the Members of this House to believe that somehow 
this bill that we're going to vote on in a few minutes is the same as 
the Republican bill. This bill saves $25 billion for those students 
over the next 5 years. The Republican bill that was voted on in this 
House costs those students a billion dollars. So there's a big 
difference. As I say, it was well worth the wait.
  So let's understand very clearly. The Members of this House are 
getting a better deal with this legislation if they vote ``yes'' on 
this bill, both sides of the aisle.
  I yield 3 minutes to the gentleman from Connecticut (Mr. Courtney).
  Mr. COURTNEY. Mr. Speaker, I, too, rise in support of the Student 
Loan Certainty Act and again want to emphasize the fact that, compared 
to the product that came out of this Chamber on May 23 that the 
majority passed on a partisan, party-line vote, on which the White 
House issued a veto threat, the final bill that's before us here today 
is a far superior piece of legislation that protects students.
  Again, as Mr. Miller said, the numbers don't lie. The bill that the 
Republicans passed on May 23 had a 4.3 percent interest rate, which was 
a teaser rate. The bill that's being passed here today is 3.86 percent, 
and over time, that nets about $5,000 of additional savings for 
students. That's real money, and that certainly is something that's 
worth the wait.
  But what I want to point out is that there is actually, in my 
opinion, a more fundamental difference which is so critical for 
borrowers, which is that this piece of legislation will fix the rate at 
time of origination. In other words, when students take on these 10-
year notes, which is what Stafford student loans are, the rate is fixed 
at the time the note is written.
  The bill that came out on May 23 was a floating variable rate product 
which would not be set until the time that students commenced payment. 
Some students take Stafford loans out over a period of 5 and 6 years, 
so the rates that they were touting back on May 23 were an illusion. 
They were not what the rate was that the student actually was going to 
be paying.
  And again, for this country, which went through the trauma of the 
subprime mortgage variable rate fiasco, this is a critical difference 
which provides greater protection for the borrower.
  If you go online today, a 30-year mortgage for a house is about 4 
percent, for an auto loan it's about 3.8 percent. They are fixed loans 
if you took those loans out today. And that's exactly what this 
compromise creates is that there will be real borrower certainty and 
protection, unlike the bill that recklessly, and on a partisan, party-
line basis, flew out of this Chamber on May 23.
  This is a better deal for America's students. It's why, again, the 
process that we went through was worth it. And again, it's certainly 
worth people's support.
  At the end of the day, though, let's remember, students are still 
paying

[[Page H5217]]

into the deficit of this country. The Congressional Budget Office has 
told us over 10 years, $184 billion of revenue is going to be generated 
through this program towards the deficit.
  We need to change that. That's not the purpose of the Stafford 
student loan program. When Senator Stafford from Vermont passed it many 
years ago, it was about providing an affordable system of access for 
higher education, not a cash windfall for the coffers of the 
government.
  And that's why we have more work to do. That's why we need to pass a 
Higher Education Authorization Act which, again, balances these 
priorities in the right direction for students, not for government 
coffers. And again, this legislation gives us the time to address that 
issue and come out with an even better program for students which, 
again, is good for them and good for our country, to make sure that we 
have a workforce which is ready for the challenges of the future.

                              {time}  1630

  Mr. KLINE. Mr. Speaker, I yield 2 minutes to a member of the 
committee, the gentleman from Nevada, Dr. Heck.
  Mr. HECK of Nevada. Mr. Speaker, I rise in strong support of the 
Bipartisan Student Loan Certainty Act of 2013.
  As the first in my family to go to college--and as a parent--I fully 
understand the value of a high-quality education and the opportunities 
it provides. I also know that accessing higher education is not cheap. 
I just started paying back the student loans of my daughter. I'm still 
paying back my student loans for medical school.
  Throughout Nevada, many new high school graduates are preparing to 
head to college this fall. Without this bipartisan compromise, 
originally proposed by the House Committee on Education and the 
Workforce and based largely on the President's own proposal, students 
face significant uncertainty over their student loans. This legislation 
provides a permanent, market-based solution that gives students and 
taxpayers the certainty they need and deserve. Additionally, by 
ensuring the interest rates are set by the market, rather than 
legislators, this bill rightly takes politics out of the student loan 
discussion.
  While we must continue our work to address the skyrocketing costs of 
higher education--because the much greater issue is the total 
indebtedness upon graduation--this bill is an important step in 
addressing the near-term needs of students.
  I strongly support H.R. 1911 and urge the passage of this important 
bill to help not only Nevada students, but students throughout our 
Nation.
  Mr. GEORGE MILLER of California. I yield 3 minutes to the gentleman 
from New York (Mr. Bishop).
  Mr. BISHOP of New York. I thank the gentleman for yielding.
  I rise today in support of the underlying legislation. Although this 
compromise is far from perfect, it is a step that must be taken in 
order to provide financial relief to American students and their 
families.
  This legislation will bring undergraduate interest rates back under 4 
percent for the upcoming academic year--a far more sustainable and 
appropriate level than the current 6.8 percent rates. Graduate students 
and parents will also benefit from lowered interest rates within this 
bill. Importantly, and in contrast to the bill that previously passed 
the House, the legislation also locks in those interest rates for the 
lifetime of each annually disbursed loan, providing student borrowers 
with critical consumer protections and a measure of predictability. 
Finally, this compromise provides interest rate caps for all student 
loans, offering an essential safety net to protect students and their 
families from the whims of market-based rates.
  While this isn't a bill that I would have written, we must all 
recognize the urgency of our current situation and pass it today. 
Classes are starting at many institutions within just a few weeks. 
Students around the country are signing master promissory notes even as 
we speak, committing themselves to years of debt and loan repayments in 
order to make an investment in their future. At the very least, this 
Congress has the responsibility to momentarily end the political 
gridlock that paralyzes our Nation and notify these hardworking student 
what their interest rates will be.
  However, let's not think for one second that our work on college 
access and affordability is now complete. With the Congressional Budget 
Office projecting interest rates of 10-year Treasury notes--the 
baseline that determines student interest rates--to rise significantly 
over the next 5 years, we must work proactively and cooperatively to 
assure affordable student interest rates not only for present students 
but future students as well.
  American student loan debt stands at $1.1 trillion. And it continues 
to rise. The Federal Government continues to make a huge profit on 
student loan repayment, even as students are forced to shoulder more of 
the burden than ever before. Balancing our deficit on the backs of 
student is simply not right, especially when considering the broader 
economic impact of saddling students with untenable amounts of debt.
  When borrowers are forced to devote huge chunks of their paychecks to 
student loan repayment, it means they will have less income to spend on 
major purchases like homes or vehicles. They are less likely to start a 
business. They are less likely to invest in retirement accounts or the 
stock market--all negative indicators that will affect our economic 
prosperity now and into the future.
  Mr. Speaker, a college education has represented a path to the middle 
class for millions of American families. Taking direct action to bring 
down the cost of a college degree by lowering student loan interest 
rates is a step in the right direction. I urge my colleagues to support 
this bill.
  Mr. KLINE. I yield 2 minutes to another member of the committee, the 
gentleman from Pennsylvania (Mr. Thompson).
  Mr. THOMPSON of Pennsylvania. Thank you, Mr. Chairman, for yielding.
  Mr. Speaker, as an original cosponsor of H.R. 1911, the Bipartisan 
Student Loan Certainty Act, I rise in support of the Senate amendment 
to H.R. 1911.
  President Obama, as part of his budget request, proposed returning 
student loan interest rates to a system of market-based variable rates 
tagged to the 10-year Treasury note.
  As a member of the Education and Workforce Committee, I can attest 
the committee staff and members worked in good faith to meet the 
President's request, developing a bill that could pass the House and 
promote certainty for student borrowers. The House moved to pass the 
bill in May, reasserting that access to education for so many of 
America's young people should not be subject to annual political 
battles. Unfortunately, the Senate chose politics over students and 
delayed passage of the legislation until last week.
  The positive is that H.R. 1911 is a complete departure from what had 
become an annual debate within Congress on how to set the rates for 
student loans. This measure modifies how interest rates on most Federal 
student loans are set, returning to a system under which interest rates 
are tied to market rates, but with rates fixed for the period of the 
loan. It would apply retroactively to any loans since July 1, when the 
3.4 interest rate on Stafford loans rose to 6.8 percent.
  This bill will transition the student loan system to one that is more 
predictable and affordable--one that protects both taxpayers and 
students. We have a responsibility to America's youth. We have a 
responsibility to the students such as those seeking opportunities at 
Penn State, Pitt, Lock Haven, Clarion, Edinboro, Juniata, Dubois 
Business College, and South Hills. We have to put forward a long-term 
plan for college affordability. This bill is a good first step and will 
offer students the lowest possible rate for higher education while 
ensuring the solvency of these important loan programs.
  I urge my colleagues to support this commonsense, bipartisan 
legislation.
  Mr. GEORGE MILLER of California. I yield 3 minutes to the gentleman 
from Colorado (Mr. Polis).
  Mr. POLIS. I'm very pleased that finally we are taking action on the 
pressing issue of college affordability for constituents of mine across 
Colorado and Americans across our country.
  Absent congressional action, the current law today has effectively 
doubled

[[Page H5218]]

the interest rate that our neediest families pay to be able to borrow 
money for afford college to 6.8 percent. I believe that the previous 
bill that passed the House was better than the doubling to 6.8 percent. 
It would save families money in the short- and medium-term while 
Congress worked through a final solution. But I'm very proud to say 
here today that this bill is far better. And I encourage my colleagues 
on both sides of the aisle to support this bill, which has several 
features that are strong improvements over the original House-passed 
version, including a fixed interest rate for the life of the loan so 
that our students are not beholden to the fluctuations of the market 
when they can least afford it--after they graduate.
  This bill would keep interest rates low for our neediest students and 
their families, providing some certainty and some surety. Under this 
bill, the typical undergraduate student borrower this year will save 
$1,500 over the life of a loan. A graduate student will save over 
$3,000.
  This bill is a step towards making sure that our student loan system 
is not subject to the whims of Washington every week, with arbitrary 
expirations and control over the interest rate. We have to make sure 
that our students are able to plan their futures.
  This bill is but the first step in the much-needed reforms that we 
need as we reauthorize the Higher Education Act. I encourage all of my 
colleagues to support this bill to keep college affordable now, and I 
hope that my colleagues will be able to consider Representative Petri's 
and my H.R. 1716 bill as we look towards long-term solutions.
  The ExCEL Act, H.R. 1716, would replace this complicated array of 
loans, subsidies, deferments, forbearances, and repayment options with 
a single loan repaid through simplified and improved income-based 
repayment. One of our goals is to protect our neediest Americans. 
Income-based repayment is a better tool than interest subsidies. While 
interest subsidies are based on a student's family income before 
school, income-based repayment ensures that students are protected when 
they truly need it--when they graduate from school, if they go through 
tough times, or if they're in a service-related profession. Under the 
ExCEL Act, we include strong borrower protections so our neediest 
students after graduation will be paying effectively a zero percent 
rate for the balance of their payments.
  We need to pass this bill now and send it to President Obama to 
prevent our students this fall from paying 6.8 percent. I hope we can 
continue the discussion and dialogue about thoughtful student loan 
reform proposals like the ExCEL Act that address keeping college 
affordable for American families.
  I am so grateful the Democrats and Republicans have come together to, 
hopefully, pass a bill here today that will be able to be brought to 
President Obama for his signature to provide some commonsense and 
predictability by lowering the student loan interest rates from 6.8 
percent, which they are under statute today, and putting us on a path 
toward fiscal sustainability.
  I urge my colleagues to support this bill.
  Mr. KLINE. Mr. Speaker, can I inquire as to how much time is 
remaining on each side?
  The SPEAKER pro tempore (Mr. Hultgren). The gentleman from Minnesota 
(Mr. Kline) has 10\1/2\ minutes remaining. The gentleman from 
California (Mr. George Miller) has 7 minutes remaining.
  Mr. KLINE. Thank you, Mr. Speaker.
  I yield 3 minutes to another member of the committee, the gentleman 
from Indiana (Mr. Messer).
  Mr. MESSER. Mr. Speaker, I rise today in support of the Smarter 
Solutions for Students Act, also known as the Bipartisan Student Loan 
Certainty Act. I commend Chairman Kline; our Education Subcommittee 
chairwoman, Ms. Foxx; Ranking Member Miller; and others for their hard 
work and diligence throughout this process of getting this bill where 
it is today.
  I am pleased that cooler heads have prevailed and Senate Democrats 
finally have agreed to the commonsense solutions proposed months ago by 
House Republicans and the President in his budget to stop interest 
rates on student loans from doubling. This is a good deal for 11 
million students. The rates are better in this agreement. Students will 
save an estimated $1,500 in interest over the life of their college 
loans as a result.
  Those beneficiaries include more than 200,000 students in Indiana 
alone, who will be taking out their student loans this year. It will 
help young people like John Houston, a Ball State University student 
and intern in my office this summer, who will be taking out student 
loans as he heads back to school this fall. Getting Congress out of the 
business of randomly setting interest rates is a good deal--both for 
students like John and taxpayers.
  The bill will allow students to benefit from lower interest rates and 
prevent taxpayers from being forced to subsidize arbitrary rates set by 
politicians for political reasons rather than for policy purposes. 
Maybe most importantly, Mr. Speaker, this legislation shows that, even 
in a challenging partisan environment, Congress can come together and 
work on behalf of the American people to make their lives a little 
easier. I hope this agreement builds momentum for reaching bipartisan 
solutions to other problems that our Nation faces.
  I urge my colleagues to support this measure.
  Mr. GEORGE MILLER of California. Mr. Speaker, I yield 2 minutes to 
the gentlewoman from Texas (Ms. Jackson Lee).
  (Ms. JACKSON LEE asked and was given permission to revise and extend 
her remarks.)
  Ms. JACKSON LEE. I'm just delighted to be able to say that the 
leadership of the Senate realized that the Republican bill would have 
overwhelmed our young people.
  I was just talking to someone just a few minutes ago, and they were 
saying we need to have a commitment that every person that graduates 
from college has a job. We should also have a commitment that every 
young person that wants to go to school and get a higher education 
should not be burdened with hundreds of thousands of dollars of debt.
  For over 2 years, our good friend, Mr. Courtney from Connecticut, 
Democrats, the Education Committee, and Mr. Miller have been begging on 
behalf of the American children to not cause them to pay this enormous 
amount but to hold the interest rates for middle class families and 
working families at 3.4 percent. And we struggled. There were many 
discussions in the United States Senate. And the reason why they 
continue to struggle is because they wanted to make sure that the 
victory came out for those young people of working parents and middle 
class parents. That's why we're here today--because they held out and 
we held out. Now we're glad to be in a bipartisan mode. But it's 
important to note that this was a struggle.
  If we pass this bill and get it on the President's desk, the 3.6 
percent or so will be held. As we go forward over the years, we'll have 
a measured increase. Not a high increase to market rates or rates 
higher than that, but a measured increase or 3, 4, or 6 percent. And 
then some 5 years out, when it reaches about 7 percent, we'll have the 
ability as a Congress to come back and look. Because we should not 
burden our students to the point where they cannot get an education.
  We all are created equal. Maybe education is not written in the 
Constitution, but certainly the opportunity for the pursuit of 
happiness. Therefore, the opportunity for education must be protected.
  This is a crucial difference between the bipartisan Senate bill of 
$11,000. The current law right now is $14,000. And what the House 
Republican bill passed was almost $17,000.
  Mr. Speaker, this is a relief. This is to be applauded. And I'm 
delighted that we have finally come to our senses.
  Today the House of Representatives will have a second chance to get 
Student Loans right. This is an opportunity to relieve the fears and 
anxiety of families of college bound students across the nation by 
passing H.R. 1911--the Bipartisan Student Loan Certainty Act of 2013. 
By passing this legislation the Congress can take a concrete step 
toward restoring the economic security, educational opportunities, and 
peace of mind of America's students.
  The goal of our nation should be to educate our youth to reach their 
greatest potential in life. A good education should be accessible and 
affordable to all of your young people.

[[Page H5219]]

  For too long, millions of America's best and brightest have been 
waiting for Congress to find a responsible solution to rising student 
loan interest rates. While House Republicans have insisted on saddling 
students with even more debt, the bipartisan legislation we passed 
today seeks to ease that burden.
  This bipartisan compromise offers hardworking students and families 
critical protections, reduces rates on all new loans this year, and 
saves undergraduates $1,500 on average over the life of their loans.
  The plan caps market-based interest rates, ensuring students won't 
bear the brunt of skyrocketing rates in the future. While the House 
Republican bill considered earlier this year only offered uncertainty, 
insecurity, and more debt for our students, the Senate compromise that 
we are considering today will restore a sense of security for nearly 11 
million Americans who are seeking a better life through higher 
education.
  The passage of the College Cost Reduction and Access Act of 2007, 
Congress made historic investments in student aid. The law did what 
Congress should always do when considering the needs of students 
seeking education to improve their chances of success. This bill halved 
interest rates on need-based federal student loans to 3.4 percent--
making these loans more affordable for low- and middle-income students. 
If Congress doesn't act before July, the rate will jump back up to 6.8 
percent, making it much more difficult for many American students and 
their families to afford a college education.
  I represent colleges and universities in my District who serve the 
higher education needs of tens of thousands of Houstonians and others 
who come to our city for its education opportunities.
  A college education should not be only for the lucky few, but should 
be available to all of those with skill and determination. Given the 
opportunity, millions of young and older Americans would access higher 
education to provide their families with a more certain financial 
future, while also strengthening our nation's economic and national 
defense human capital. A college degree is also becoming essential to a 
growing number of jobs in the 21st century economy.


                       STEM Education Statistics

  STEM workers earn 26 percent more than non-STEM graduates.
  By 2018 we will need: 710,000 Computing workers, 160,000 Engineers, 
70,000 Physical Scientists, 40,000 Life Science workers, and 20,000 
Mathematics workers.
  STEM Computing Jobs are critical to America's future: Software 
engineers, Computer networking workers, Systems analysis, and Computer 
researcher or support workers.
  College student STEM retention according to the President's report is 
improved when students have the proper peer and instructor support 
system, which is what Superintendent Dr. Soner Tarim has done at each 
of the area's 17 Harmony Schools.
  By providing access to an affordable education we are eliminating the 
shortage in two ways by: (1) creating opportunities for Americans to 
prepare for STEM careers, and (2) by welcoming those from other 
countries who choose to study and remain in the United States to work.
  According to the Association for Computing Machinery K-12 computer 
science education as a component of STEM education would help students 
have a deeper understanding of the fundamentals of computing, which is 
a critical foundational knowledge for a wide range of education needs 
for other STEM education programs and future jobs.
  We know that fewer than 40 percent of new college students enter 
College intending to get a STEM related degree. This is not good enough 
for America--we need to do much better.
  By making college more affordable and accessible we could increase 
the retention of the STEM degree majors from 40 percent to 50 percent, 
if we reach this goal the nation can meet three fourths of the 1 
million STEM workers we will need.
  Minority college students who major in STEM higher education make 25 
percent more than minority graduates with non-STEM educations. Minority 
students who take STEM jobs make 50 percent more than minority non-STEM 
graduates.
  Students and families cannot wait any longer to know how much they 
will owe on their student loans in the coming academic year. Making 
college more affordable is critical to sustaining America's economic 
competiveness. Business leaders know it is vital for the workforce of 
tomorrow to get an education beyond high school. If more of today's 
students cannot afford college, businesses will not have the workers 
with the education and training they need to keep our economy 
competitive and dynamic far into the future.
  I urge my colleagues in joining me in support of this Student Loan 
legislation.


       PROJECTED INTEREST RATES UNDER SENATE BIPARTISAN AGREEMENT

  Below are the projected interest rates under the bipartisan Senate 
agreement for 2013-2023:

----------------------------------------------------------------------------------------------------------------
                                                     Undergraduate
                                                        students                              Parent loans for
                       Year                         (subsidized and    Graduate  students       undergraduate
                                                      unsubsidized                             students (PLUS)
                                                    Stafford  loans)
----------------------------------------------------------------------------------------------------------------
2013.............................................            3.86                  5.41                  6.41
2014.............................................            4.62                  6.17                  7.17
2015.............................................            5.4                   6.95                  7.95
2016.............................................            6.29                  7.84                  8.84
2017.............................................            7                     8.55                  9.55
2018.............................................            7.25                  8.8                   9.8
2019.............................................            7.25                  8.8                   9.8
2020.............................................            7.25                  8.8                   9.8
2021.............................................            7.25                  8.8                   9.8
2022.............................................            7.25                  8.8                   9.8
2023.............................................            7.25                  8.8                   9.8
Caps.............................................            8.25%                 9.50%                10.50%
----------------------------------------------------------------------------------------------------------------
Note: Rates fixed through repayment once borrowed. Rates are based on CBO projections of 10-year Treasury rates.

  Mr. KLINE. Mr. Speaker, I have no other speakers, and I'm prepared to 
close.
  Mr. GEORGE MILLER of California. I have no further speakers.
  Mr. Speaker, in closing, I want to thank the chair of the committee 
for bringing this bill to the floor as soon as it was possible to do, 
but certainly before we break for August.
  This legislation, as I said earlier, is a vast improvement over what 
we voted on before and what was presented to this House. I think 
families all across the country with students heading off to college or 
returning to college this fall will be happy to know that as they take 
out a student loan this year, they will save over the next 5 years some 
$25 billion because those loans that they take out will have that 
interest rate guaranteed at that rate today and for the life of that 
loan.

                              {time}  1645

  Big distinction between this bill and the bill that was presented for 
the House to vote on, which many of us rejected but the Republicans 
supported and was passed to the Senate. Over the next 10 years, it 
provides about $4 billion in additional relief.
  What's important to know is that this will deal with making college 
more affordable. But, clearly, what is on the agenda of the Education 
and Workforce Committee is making sure that we're dealing with the cost 
of college so that we can reduce the student debt in this country, we 
can reduce the affordability of college in this country.
  We expect that as we struggle to try to figure out how to provide 
this loan money on behalf of the taxpayers to these students who are 
the future of our economy, the future of our society, that the 
institutions will struggle with seeing what they can do to lower the 
cost of these colleges.
  This is a very exciting time in postsecondary education because we 
have opportunities now with technologies and the ability to present 
classes in new formats, in new forums for students much differently 
than in the past. We've got to make sure that we're providing that 
quality education, but perhaps in a way that's more cost efficient. And 
efficiency isn't the enemy of intellectual curiosity or intellectual 
achievement or scholastic achievement, but it may be helpful to

[[Page H5220]]

those families who are struggling with a debt to provide one, two, or 
three children a college education, or for those students who graduated 
who are struggling with that debt as they enter the job market.
  So we really want to say that we've done the best we can under these 
circumstances with this legislation, but we expect the institutions of 
higher education all across this country to reexamine how they're doing 
their business and what they can do to reduce the cost of college. And 
we'll continue to do our part, trying to make it more affordable for 
the American family.
  But in the past, we've seen where we put money in at the top and the 
States took the money out at the bottom. We're not going to play that 
game anymore, and we can't play that game anymore. That has ended up 
with a lot of increased debt on the part of students. Certainly with 
respect to the public institutions, the States have to step up and 
share the responsibility for their public institutions. We cannot have 
this situation where they continue to decline their support and then 
foster that off on parents and students, and then the parents and 
students need help from the Federal Government. That chain has got to 
stop here.
  But I think today, this is a big and important step in terms of the 
affordability of college for students. And all of the indicators are 
that that college degree is well worth it over the lifetime of work of 
students, over the types of jobs that they will get, the types of wages 
that they will receive. It's still a huge benefit. There has been a lot 
of discussion over the last few months that maybe college isn't worth 
it anymore. It is, but we have to do it right. And young people have to 
be able to obtain that college education, and they have to do it with 
the least amount of debt possible.
  With that, I yield back the balance of my time.
  Mr. KLINE. Mr. Speaker, I yield myself the balance of my time.
  It's always interesting to listen to the debate here on the floor. No 
matter how hard we try to use the word ``bipartisan,'' we get into 
these partisan squabbles: the Republican bill was bad and this bill is 
good, and that bill is--look, we needed to change the status quo, and 
that's always hard to do.
  We had some pretty simple goals here that we were trying to reach. We 
wanted to get out of the partisan political squabble that was occurring 
in this city every year as we tried to figure out, through some 
alchemy, what the student loan interest rate ought to be. The answer 
has been in front of us for a long time: the market is the best 
determiner of that.
  So we wanted to put together legislation that would get us out of 
this political squabble, let the market do this in a way that was fair 
to students and fair to taxpayers. Let the market do it based on the 
10-year Treasury, which is the best indicator of what it costs the 
Federal Government to borrow money; do it so that it was as close to 
budget neutral as we could get it.
  The President of the United States had a proposal that did those 
things. At the end of 10 years, I think the President's budget saved 
the taxpayer about $3 billion. The House bill that we've been 
discussing saved the taxpayers about $3.5 billion, And this bipartisan 
Senate bill, just under $1 billion saved. That's budget neutral in this 
city, in a 10-year window, from the Congressional Budget Office. We're 
trying to get that.
  It was a bizarre circumstance, Mr. Speaker, that I and House 
Republicans were working with the White House and the Department of 
Education trying to convince our Senate colleagues, Senate Democratic 
leadership that the answer was there in front of them, all they had to 
do was pick it up and pass it. We can get it done in this House. We can 
answer the questions of parents and students and put some certainty in 
this. I am very, very pleased that the Senate was able to put together 
that bipartisan--
  Mr. GEORGE MILLER of California. Will the gentleman yield?
  Mr. KLINE. I yield to the gentleman from California.
  Mr. GEORGE MILLER of California. I didn't mean to interrupt. I 
thought you were going to yield back your time. I just wanted to ask 
you for 30 seconds. I thank the gentleman for yielding.
  We have these differences at the Member level and the institutional 
level.
  I just forgot, before I sat down, to thank the staffs of both sides 
of our committee for their professional work. Because whatever's going 
on on the surface here and surface warfare, we know that, underneath, 
the staff is trying to make it work out whatever direction we decide to 
move in. So I just want to thank so much the staff both of the majority 
and minority side for their help.
  Mr. KLINE. I thank the gentleman.
  Reclaiming my time, I will pick up on that note because we could not 
have done this without the hard work of some really instrumental 
people.
  Certainly, I'd like to take a moment to recognize and thank the 
committee staff, as my colleague has done, for their hard work on this 
important issue, both sides of the aisle.
  First, I would like to thank the majority staff director, Juliane 
Sullivan; our education policy director, James Bergeron; and 
professional staff member Brian Melnyk; and of course Amy Jones, 
sitting next to me here today, who started working to solve this 
problem more than a year ago. That's the frustrating thing here, Mr. 
Speaker. This problem didn't arise in April or May. We've known for 
more than a year, with certainty, that we had to address this issue. So 
I thank Amy for her passion in all higher education work. I know she's 
just resting up so that we can start into reauthorization of the Higher 
Education Act as we go forward.
  Certainly I'd like to thank Virginia Foxx, the chairman of the 
Subcommittee on Higher Education and Workforce Training, who helped 
craft the Smarter Solutions for Students Act. Again, I would remind my 
colleagues, this was a bipartisan bill. It came out of the committee 
bipartisan, came off the floor with a bipartisan vote, and Ms. Foxx 
deserves a lot of credit for her hard work.
  In closing, I remind my colleagues, the legislation before us today 
is a victory for students, families, and taxpayers. It deserves our 
robust support.
  I urge my colleagues to vote ``yes'' on the bipartisan Student Loan 
Certainty Act, and I yield back the balance of my time.
  Mr. DeFAZIO. Mr. Speaker, today I will vote for H.R. 1911, the 
Bipartisan Student Loan Certainty Act of 2013. Due to congressional 
inaction student loan rates doubled to 6.8% on July 1st. This is not 
the bill I would've written but it was necessary to come to an 
agreement so that today's students don't see their interest rates 
double. It would have been my preference to pass the legislation 
introduced by Senator Elizabeth Warren that gives students the same low 
interest rates that the Federal Reserve grants Wall Street banks.
  With passage of H.R. 1911, this year's students will only pay a 3.8% 
interest rate when they go back to school in the fall. This rate will 
be locked in for the entire life of their loan. Although the interest 
rates will likely increase for future students under this bill, they 
should remain below the current 6.8% for the next few years. This is a 
short term solution to the long term problem of rising college costs 
and increasing student debt. I stand ready to work with my colleagues 
to address the issue of college affordability including student loan 
interest rates in the upcoming reauthorization of the Higher Education 
Act.
  Mrs. McCARTHY of New York. Mr. Speaker, as you may know, on July 1st 
the rate for subsidized Stafford student loans doubled from 3.4% to 
6.8%. Today, students already face over $1 trillion in student loan 
debt nationally and any effort to further indebt hardworking students 
and families would be disgraceful. This Congress needs to act in a 
responsible fashion in order to help alleviate the cost prohibitive 
status of higher education in this country. Today, I am pleased to say 
that this Congress has acted to help students and families by putting 
forward H.R. 1911, the Bipartisan Student Loan Certainty Act of 2013, 
legislation that I am proud to support.
  Unlike the proposals floated earlier this Congress by the House 
majority, this bill offers students and families a reasonable way to 
finance higher education. As opposed to rates that fluctuate throughout 
the life of the loan, H.R. 1911 allows for a variable rate for new 
borrowers that adjusts yearly but is fixed for the life of the loan 
once borrowed. Further, the bill offers lower interest rates for 
undergraduate borrowers of subsidized and unsubsidized Stafford loans 
by pairing them to the 10 yr Treasury (T) bill + 2.05% as opposed to 
the 10 yr T bill + 2.5% in the original House majority proposal. 
Lastly, the bill offers interest rate caps for borrowers to ensure that 
interest

[[Page H5221]]

rates do not soar to undesirable levels in the years to come.
  If this bill is signed into law, rates on new subsidized Stafford and 
PLUS loans will go down this year. Undergraduates would borrow at 
3.86%, a cut from 6.8%, graduate students would borrow Stafford loans 
at 5.4%, a cut from 6.8% and parents and graduates borrowing PLUS loans 
would borrow at 6.4%, a cut from 7.9%. For a freshman undergraduate 
beginning school this year and taking out the maximum amount of loans, 
he/she will save $3,300 in interest payments over their college career 
as compared to current law and undergraduate students would save $25 
billion in debt relief, according to CBO projections, over the next 
five years as compared to current law. While this bill represents a 
significant improvement for students, I do have reservations that the 
undergraduate interest rate cap, currently set at 8.25%, is too high. 
While it is widely believed that students will enjoy low rates in the 
short-term, there is a strong possibility that rates will skyrocket as 
our national economy improves. I believe that, for undergraduates, a 
lower cap should be considered and I would welcome its continued review 
by this Congress in the years to come.
  Overall, Mr. Speaker, this is a good bill that will give students and 
families alike significant financial relief and stability in the years 
to come.
  Mr. GENE GREEN of Texas. Mr. Speaker, I rise today to express my 
opposition to the Motion to Concur in the Senate Amendment to H.R. 
1911, the Smarter Solutions for Students Act.
  This bill returns federal student loans to a system of market-based 
variable rates, an imprudent policy that seeks profits for deficit 
reduction at the expense of students struggling with the substantial 
and climbing cost of post-secondary education.
  While the bill may appear to reverse the interest rate hike that 
occurred on July 1, setting rates at 3.8 percent for this year and 4.6 
percent for next year for undergraduate Stafford student loan 
borrowers, it is essentially a bait and switch that will pile extra 
debt onto students when the current record-low rates inevitably rise.
  This is unacceptable. Student loan debt is a major drag on the 
American economy, reaching $1 trillion and climbing, and recently 
surpassing credit card debt as the largest form of consumer debt. 
Approximately 60 percent of students take out loans to attend college, 
and increasing the costs of borrowing will prevent millions from being 
able to pursue higher education.
  While the interest rate caps are a step in the right direction, they 
are too high to meaningfully protect students when the temporarily low 
rates give way to rates that are even higher than the 6.8 percent rate 
this bill attempts to fix.
  College educated students are the future engine of our country, and 
anyone who wants to pursue a post-secondary education should have the 
opportunity to do so without going into crushing debt. I urge my 
colleagues to vote against this legislation and instead, extend the 
current interest rate of 3.4 percent until Congress enacts a true long-
term solution to the cost of college that is worthy of our Nation's 
young people.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Minnesota (Mr. Kline) that the House suspend the rules 
and concur in the Senate amendment to the bill, H.R. 1911.
  The question was taken.
  The SPEAKER pro tempore. In the opinion of the Chair, two-thirds 
being in the affirmative, the ayes have it.
  Mr. GEORGE MILLER of California. Mr. Speaker, on that I demand the 
yeas and nays.
  The yeas and nays were ordered.
  The SPEAKER pro tempore. Pursuant to clause 8 of rule XX, further 
proceedings on this motion will be postponed.

                          ____________________