[Congressional Record Volume 160, Number 89 (Tuesday, June 10, 2014)]
[Senate]
[Pages S3519-S3520]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                                 RECESS

  The PRESIDING OFFICER. Under the previous order, the Senate stands in 
recess until 2:15 p.m.
  Thereupon, the Senate, at 12:48 p.m., recessed until 2:15 p.m. and 
reassembled when called to order by the Presiding Officer (Ms. 
Baldwin).


                           Order of Business

  The PRESIDING OFFICER. Under the previous order, the time until 2:30 
shall be equally divided between the two leaders or their designees.
  The Senator from Rhode Island.


             Bank on Student Emergency Loan Refinancing Act

  Mr. REED. Madam President, I rise in strong support of the Bank on 
Student Emergency Loan Refinancing Act. I urge my colleagues to work 
with us to brighten our Nation's future by turning the tide against the 
student loan debt burden that threatens to hold back this generation of 
Americans.
  Since 2003, student loan debt has quadrupled. It has surpassed credit 
card debt, and it is only second to mortgage debt for American 
households. We know that borrowers are struggling with this debt. 
Delinquency rates are substantially higher for student loans than for 
other types of debt. Default rate have risen. The Federal Reserve Bank, 
the National Association of Realtors, the Consumer Financial Protection 
Bureau, the Pew Research Center, and others have begun to sound the 
alarm about the broader impacts of student loan debt on our economy.
  Home ownership among young people has fallen. Young households with 
student loan debt have accumulated seven

[[Page S3520]]

times less wealth than their debt-free peers. The interest rate on 
undergraduate student loans was 3.86 percent this year, yet many 
borrowers are locked into loans at 6.8 percent with no way to 
refinance. The Government Accountability Office estimated the Federal 
Government would earn an estimated $66 billion from student loans 
originated between 2007 and 2012.
  Surely we can afford to give these borrowers a break and reduce their 
interest rates to at least that which was agreed to in the Bipartisan 
Student Loan Certainty Act that was signed into law last year, which 
still sets rates too high in light of the fact that the Congressional 
Budget Office estimates show that student loans will still generate 
revenue for the government even at these lower rates.
  That is the simple premise behind the Bank on Student Emergency Loan 
Refinancing Act. I am a proud cosponsor with Senator Warren. I salute 
her for her leadership, for her insight, and for her advocacy for 
students and families across this country.
  The other side may deny that student loan debt is an urgent problem 
that requires Senate action. But for the estimated 25 million Americans 
who could benefit from refinancing, including 88,000 in my home State 
of Rhode Island, that is cold comfort indeed. We can provide real 
relief for student loan borrowers, and let them put their hard-earned 
money to work for building a better life for their families and a 
stronger economy for our Nation.
  Looking forward, we need to work together to tackle the drivers in 
student loan debt--rapidly rising college costs and the rollback of 
State investment in higher education in public colleges throughout this 
country. We need to renew our commitment to the core principle of the 
Higher Education Act, that no American should be denied the ability to 
go to college because their family lacks the means to pay.
  We need to get back to the idea that educating Americans is 
fundamentally in our national interest and that we have a shared 
responsibility at the Federal, State, local, institutional, and 
individual levels for investing in our people. My generation benefited 
from this kind of investment. This and future generations should have 
similar opportunities to develop their talents and pursue their dreams 
in order to secure a brighter future for them and for our country.
  Tomorrow, we begin voting to move forward on legislation that could 
provide relief to as many as 25 million Americans struggling under the 
weight of student loan debt. For those people, this is not a political 
stunt. The legislation would enable student loan borrowers to lower 
their interest rates, reducing their payments and ultimately reducing 
the amount they will have to repay overall. When rates go down, we can 
refinance other types of debt. Student loans should not be an 
exception.
  This student debt relief is fully paid for by addressing an inequity 
in our Tax Code that allows millionaires and billionaires to pay lower 
rates than regular middle-class Americans. Student loans are supposed 
to help people finance their education so they can get ahead, not serve 
as a ball and chain that weighs them down for years and years and 
years.
  I urge all my colleagues to support the Bank on Student Emergency 
Loan Refinancing Act.
  I yield the floor and suggest the absence of a quorum.
  The PRESIDING OFFICER. The clerk will call the roll.
  The bill clerk proceeded to call the roll.
  Mrs. BOXER. I ask unanimous consent that the order for the quorum 
call be rescinded.
  The PRESIDING OFFICER. Without objection, it is so ordered.

                          ____________________