[Congressional Record (Bound Edition), Volume 158 (2012), Part 6]
[Senate]
[Pages 8210-8211]
[From the U.S. Government Publishing Office, www.gpo.gov]




                             STAFFORD LOANS

  Mr. BROWN of Ohio. Madam President, in 25 days, the cost of attending 
college, a trade school, a university, or a 2-year community college 
will increase for some 380,000 students in my State of Ohio. It is 
because without congressional action--something which we have tried to 
fix repeatedly on the floor of the Senate--interest rates for Stafford 
loans are scheduled to double on July 1.
  Now, this was done 5 years ago. Bipartisanly, we were able to do 
this. President Bush signed legislation by a Democratic Congress--a 
Democratic House, a Democratic Senate--to freeze interest rates on 
Stafford subsidized loans for American college students for 5 years at 
3.4 percent. That expires July 1, and it is something we need to do, we 
have tried to do. It has repeatedly been batted down by threats of a 
filibuster.
  That is why today I met with students in Toledo, at Owens Community 
College. Jakki, CJ, and Megan all have dreams to attend, first, Owens, 
and then to move on to 4-year institutions. But they rely on Stafford 
loans to afford their tuition and other expenses.
  I have been to Cuyahoga County Community College meeting with 
students. I have been to Hiram College visiting students on their 
graduation day. I have been to the University of Cincinnati. I have 
been to Ohio State. I have been to Wright State University in Dayton 
speaking to students.
  They understand if we do not act, future college graduates will see 
an average of about $1,000 in extra interest fees per student per 
Stafford loan.
  My colleague Jack Reed, a Senator from Rhode Island, Senator Harkin, 
and I have introduced the Stop the Student Loan Interest Rate Hike Act, 
which would keep college affordable for more students.
  The act is fully paid for by closing a corporate tax loophole. We 
want to pay for this. We do not want to add to the debt of college 
students. We do not want to add to their personal debt by allowing this 
3.4-percent interest rate to double.
  I would like to make this more personal, if I could, and read some 
letters from students in Ohio schools. These higher interest rates 
affect students personally, of course. It also affects the families who 
are helping to pay for their college tuition in many cases. It also 
affects the community. We know, looking back at the 1940s, 1950s, 
1960s, and 1970s, the GI bill enabled literally millions of 
individuals--millions of young Americans who had fought for their 
country in World War II or Korea or in successive military 
involvements--to go to school and to afford their college tuition. What 
that meant was not just helping those students and their families. It 
helped raise the level of prosperity for the entire country because 
those were people who got to go to school. It meant they could start 
businesses and buy homes and get better jobs and give back a lot to our 
communities.
  That is the same thing that will happen if we can lock in these 3.4-
percent interest rates. It will mean students who might not have been 
able to buy a car or might not have been able to start a business or 
might have been more reluctant to start a family--they are less likely 
to do that if we cannot lock in these interest rates.
  Before yielding the floor to Senator Inhofe, I would like to share 
three letters my office received recently, starting with Kasey from 
Union in Miami County, OH. Miami County is just north of Dayton.

       Going to college was never a question for me--there was an 
     unspoken understanding that it would happen.
       Unfortunately, my parents could not afford to pay for 
     college for all of their children, particularly after [we 
     faced] foreclosure in 2007.
       At 17, I faced responsibility for covering the $10,000 per 
     year gap of paying for George Washington University.
       Over the past four years, I have taken out the maximum 
     allowed in student loans--both subsidized and unsubsidized. I 
     have held a federal work study job since October of my 
     freshman year. Because both of my parents were unemployed at 
     the time, I was forced to take out PLUS loans. This still 
     left me with a gap, and I had to ask my parents to spend a 
     significant portion of their retirement fund to allow me to 
     finish my degree.
       At 21 years old, I have more than $42,000 in loans to 
     repay. I have received a world class education thanks to the 
     opportunities provided to me by my scholarships, student 
     loans, Pell grants and federal work study programs.
       Students should not be punished for following the American 
     Dream. There is a huge emphasis on the importance of 
     education, but the soaring costs of private and public 
     universities is making it harder and harder for my 
     generation.
       Doubling the interest rates on loans is not the solution. 
     Making education harder to pay for will shut doors for 
     students like me, and college will inch back toward being a 
     privilege of the wealthy.
       I have worked part time since I was 15, I did well in high 
     school to win a substantial scholarship, I have maintained my 
     grades in college to keep that scholarship, I have taken 
     advantage of work study programs, and I have every intention 
     of paying back my student loans in full as I enter the world 
     of full time employment.
       Please do not make it harder to pursue the American Dream.

  Waylon from Fairborn, Greene County, near Springfield. The city of 
Xenia is nearby, outside of Dayton.

       I am deeply concerned about the thought of an increase in 
     student loan interest.
       I am currently a student at Antioch University Midwest 
     taking classes to pursue my license to become an Intervention 
     Specialist. I also have two children who are finishing up 
     their sophomore years in college at the end of May.
       My sons, as well as myself, have student loan debt and an 
     increase in the rates would certainly have a diminishing 
     affect on affording an already higher tuition rate at the 
     college itself.
       Hasn't it been a big push for the people in our country to 
     become more educated equating to a more resourceful and 
     competitive country?
       How will this ever be attained without an affordable 
     education?
       Gaining higher, more competitively paying jobs would also 
     equate to more taxes being paid!
       Isn't that what we should be looking at?
       I believe that there is a disconnection between what people 
     in Washington want--a more educated country and how they are 
     willing to get it.

  Sarah, from Dayton, writes:

       I started college in fall 2003. As a foster youth fresh 
     from emancipating, I took out student loans because I don't 
     have any family that can help me pay for college.
       9 years, 2 Bachelor of Arts (one in Criminal Justice and 
     the other in Social Science Education . . . ) and an almost 
     complete Master of Arts degree later not only am I $100,000 
     in debt with student loans I am still unable to find a job.
       Since I am overqualified for jobs at places like McDonald's 
     (who take one look at my application and reject it) and 
     underqualified for positions using either of my degrees, I am 
     forced to look outside of Ohio for jobs that will allow me to 
     at least use my 1-2 years of secretary experience so that I 
     have the salary to start paying on these loans.
       My student loans are hindering not only my ability to 
     possibly finish my Master's degree but also to potentially 
     purchase a home and find a position near my family.
       When I graduate I will not be able to move back home since 
     my parents were the state so I will have to find a position 
     outside what I went to school for and probably for minimum 
     salary or even minimum wage just so I do not end up homeless. 
     I may even have to look overseas to find work.

[[Page 8211]]

       I have hopes that the government will see stories like mine 
     from people who have risen above their circumstances and are 
     able to go to college to make their lives better and not be 
     statistics and actually do something to help us.

  These stories, obviously, speak for themselves. We are certainly 
leaving our children with far too much debt. Ten years ago we had a 
budget surplus, until this government--the House and Senate and the 
President in the last decade--made terrible mistakes and blew a hole in 
the Federal budget. We do not want to also leave them increased debt 
from student loans. My wife was the first person in her family to go to 
college, to Kent State University. She graduated with almost no debt, 
even though her family was not really able to help her much, because 
the State government was more involved, the Federal Government was more 
involved, and tuition was lower.
  It is a moral question to me to make sure we can freeze these 
interest rates. We have no business saddling a more onerous debt burden 
on the young men and women of our country.
  Madam President, I yield the floor.

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