[Congressional Record Volume 161, Number 46 (Wednesday, March 18, 2015)]
[Senate]
[Pages S1632-S1633]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Ms. WARREN (for herself, Mr. Franken, Mr. Bennet, Mr. Reed, 
        Mr. Leahy, Ms. Mikulski, Mrs. Boxer, Mrs. Murray, Mr. Wyden, 
        Mr. Durbin, Ms. Stabenow, Mr. Menendez, Mr. Cardin, Mr. Brown, 
        Mr. Casey, Mrs. McCaskill, Mr. Whitehouse, Mr. Udall, Mrs. 
        Shaheen, Mr. Merkley, Mrs. Gillibrand, Mr. Blumenthal, Mr. 
        Schatz, Ms. Baldwin, Ms. Hirono, Mr. Heinrich, Ms. Heitkamp, 
        Mr. Markey, and Mr. Peters):
  S. 793. A bill to amend the Higher Education Act of 1965 to provide 
for the refinancing of certain Federal student loans, and for other 
purposes; to the Committee on Finance.
  Ms. WARREN. Mr. President, I rise today to announce the introduction 
of the Bank on Students Emergency Loan Refinancing Act of 2015. This 
bill will allow student loan borrowers to take advantage of today's 
lower interest rates, and I urge my colleagues to support it.
  Last Congress, Democrats pressed for a similar bill which has strong 
support from the Senate and from the public. Every Democrat, every 
Independent, and three Republicans voted to move this bill forward. 
More than 700,000 people signed petitions in support of student loan 
refinancing, but Republicans filibustered the bill, so it didn't pass. 
It is time to try again, because a problem that was bad last year has 
gotten worse--much worse.
  Since last year, nearly 1 million more borrowers have fallen behind 
in their payments. Nearly 1 million more are watching their balances 
get bigger, not smaller. Nearly 1 million more people are sweating out 
how they are ever going to repay their student loan debt.
  Last year, student loan debt was an economic emergency. Now, 1 year 
later, the emergency is getting worse. Just look at the numbers. 
Students are now struggling with $100 billion more debt than 1 year 
ago. Since last year, total student loan debt has jumped to $1.3 
trillion, and the debt is crushing young people.

  Last year, experts at the U.S. Treasury, the Federal Reserve, and the 
Consumer Financial Protection Bureau all sounded the alarm on student 
debt. This year, the alarm bells are sounding even louder. One year 
ago, the Federal Government was projected to take in tens of billions 
in profits on the backs of our kids as a result of artificially high 
interest rates. One year later, interest rates on new loans are even 
higher, and even with millions of people struggling to pay, even after 
accounting for administrative and other costs, the Federal Government 
is still raking in huge profits on its student loan program.
  Despite overwhelming public support for cutting the interest rates on 
student loans, Republicans last year refused to even debate this bill. 
Republicans said there were other, better ways to tackle student debt, 
but Republicans did nothing, nothing except filibuster the only student 
loan bill on the table. So tens of millions of borrowers got nothing, 
no help at all. Today, millions of borrowers are left with interest 
rates of 6 percent, 8 percent, 10 percent, and even higher. Nearly 1 
million more borrowers are falling behind, and the Republicans have 
done nothing. Nearly 1 million more borrowers are falling behind, and 
they are watching their debt load get bigger. Nearly 1 million more 
borrowers are falling behind, paying interest rates that produce 
obscene profits for the U.S. Government, and the Republicans will not 
even debate refinancing student loans.
  Why can't people refinance their student loans? When interest rates 
are low, homeowners can refinance their mortgages to reduce their 
payments. Businesses can refinance their debts. Even governments can 
refinance their debts. But student loan borrowers are stuck with their 
loans, sometimes at 6 percent, 8 percent, 10 percent, and even higher.
  Our proposal is simple: refinance outstanding loans down to 3.9 
percent for

[[Page S1633]]

undergraduates, and a little higher for graduates and PLUS loans. This 
single change would give borrowers across this country a chance to save 
hundreds--and for some, thousands--of dollars a year. That's real 
money--money they can put toward paying down the balance on their debt, 
saving for a home, buying a car--money they can put toward building a 
solid future.
  This bill doesn't add one dime to the deficit. It is fully paid for 
by closing up a tax loophole that allows millionaires and billionaires 
to pay a lower tax rate than middle class families.
  If Republicans don't like that way to pay for the student loan bill, 
here's another idea. Senators Reed and Blumenthal have advanced a bill 
that would close a different tax loophole. They want to end the tax 
breaks for executive bonuses that are bigger than a million dollars.
  I say to my Republican colleagues, if you don't like that way to pay 
for the student loan bill, there are other options as well. Let's sit 
down and talk about it, but don't close your eyes and pretend this 
isn't happening. Don't turn your backs on the 40 million Americans with 
student loan debt. Don't do nothing.
  Refinancing student loans will not fix everything that is wrong in 
our higher education system. We need to cut the price of college. We 
need to reinvest in public universities. We need to shore up financial 
aid, crack down on for-profit colleges, and provide better protections 
on student loans, but let's start by allowing people to refinance their 
student loans. Let's start by cutting back on the interest payments 
that are sinking young people and holding back this economy.
  We could have refinanced student loan debt 1 year ago, but 
Republicans said no. Now Americans owe $100 billion more than they did. 
Now nearly 1 million more borrowers are falling behind. Now more people 
than ever are choking on student loan debt.
  By refusing to act, Republicans are sinking the hopes of an entire 
generation. It is time for Congress to step up and fix this problem, 
before it drags down another million Americans and another and another. 
It is time to refinance student loan debt.

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