[Congressional Record (Bound Edition), Volume 158 (2012), Part 7]
[House]
[Page 9233]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1010
                  STAFFORD STUDENT LOAN INTEREST RATES

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Connecticut (Mr. Courtney) for 5 minutes.
  Mr. COURTNEY. Mr. Speaker, unless Congress acts in the next 11 days, 
the interest rates for the subsidized Stafford student loan program are 
going to increase from 3.4 percent to 6.8 percent. This is at a time 
when student loan debt now has topped the $1 trillion number, which is 
according to the Federal Reserve Bank.
  This is a program which will provide relief for over 7 million 
college students who literally today are already trying to budget for 
next fall's semester at colleges and universities--at 2-year colleges, 
at 4-year colleges. Yet this Congress left for 10 days, up until 
yesterday, for another recess--the ninth recess this year. This number, 
11 days until the rate-hike increase, should probably be 6 days because 
that's all the number of days that the Speaker has scheduled between 
now and July 1.
  How did we get to this point?
  In 2007, when the Democrats controlled the Congress, we voted for the 
College Class Reduction Act, with Republican support, which cut the 
rate for the subsidized Stafford student loan program from 6.8 percent 
to 3.4 percent. That has helped over 15 million college kids over the 
last 5 years. It was a sunset measure, like many other bills that pass 
in this Congress; and last July 25, on that podium, President Obama 
challenged this Congress to avoid allowing that rate to double on July 
1.
  For 3 solid months, we had absolutely no action in this Congress--no 
hearings, no markup, no bill. Luckily, external pressure was exercised 
on this Chamber. We had 130,000 college students drop off petition 
signatures to the Speaker, demanding action. Finally, the Speaker 
rushed a bill to the floor, without a hearing, without a markup--a 
totally hyper-partisan bill--that did delay the rate hike for 1 year, 
yet was paid for with a measure that was so unacceptable: cutting 
programs and funding for cervical cancer screening, diabetes screening, 
cardiac screening. It was a measure which was dead on arrival, but at 
least it was some response. It was at least a flicker of acknowledgment 
that there was a real problem out there for middle class families 
around the country.
  Now, on January 5, when the President announced his challenge to the 
Congress, I introduced legislation before midnight that night which 
would have locked in the lower rate at 3.4 percent. We have 152 
cosponsors in the House for that measure, and in the Senate there is a 
back-and-forth going on right now about a 1-year extension. So, again, 
there actually are some hopeful signs. Leader Reid, Harry Reid, 
introduced a measure with a pay-for, which was not greeted with 
immediate criticism and denunciation, so there is actually a chance 
that between now and July 1 we can come together and do our jobs and 
actually be here to work on the people's business and to make sure 
that, again, 7 million college kids don't see their interest rates 
spike at a time when student loan debt has shattered all records.
  The stakes could not be higher. U.S. graduation rates now have fallen 
to 12th in the world. We were No. 1 in the 1980s. There are a variety 
of reasons which explain that, but certainly the high cost of college 
is one of those reasons. We are seeing now an alarming trend of 
individuals who take on debt to go to college and then never get their 
degrees. Debt without a degree is almost a death sentence--a lifetime 
of struggling in terms of trying to get ahead. We as the Congress have 
the responsibility to make sure that that doesn't happen or at least 
that we don't add to the problem by allowing these rate hikes to go 
into effect on July 1.
  Mr. Speaker, if you look historically at the Stafford student loan 
program, if you look historically at the Pell Grant program, if you 
look historically at the Land Grant College program instituted by 
President Abraham Lincoln, this is an issue on which we have always 
been able to put aside partisanship and move forward together in order 
to make sure that the real crown jewels of our country, which are our 
people--particularly our young people--are always protected. That test 
is now before us over the next 11 days.
  Let's do the right thing; let's work together; let's compromise; 
let's come up with a plan to protect 7 million college kids, and for 
once send a signal to the people of this country that we are listening 
and that we are actually responding to the critical needs that face 
this Nation's future.

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