[Congressional Record (Bound Edition), Volume 159 (2013), Part 5]
[Senate]
[Pages 6522-6524]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. SANDERS (for himself, Mr. Burr, Mr. Rockefeller, Mrs. 
        Murray, Mr. Brown, Mr. Tester, Mr. Begich, Mr. Blumenthal, Ms. 
        Hirono, Mr. Isakson, Mr. Johanns, Mr. Moran, Mr. Boozman, and 
        Mr. Heller):
  S. 893. A bill to provide for an increase, effective December 1, 
2013, in the rates of compensation for veterans with service-connected 
disabilities and the rates of dependency and indemnity compensation for 
the survivors of certain disabled veterans, and for other purposes; to 
the Committee on Veterans' Affairs.
  Mr. SANDERS. Mr. President, as Chairman of the Committee on Veterans' 
Affairs, I am proud to introduce the Veterans' Compensation Cost-of-
Living Adjustment Act of 2013. I am also pleased to be joined by 
Ranking Member Burr and all of my colleagues on the Committee on 
Veterans' Affairs in introducing this important legislation. I look 
forward to our continued work together to improve the lives of our 
Nation's veterans.
  Effective December 1, 2013, this measure would direct the Secretary 
of Veterans Affairs to increase the rates of veterans' compensation to 
keep pace with a rise in the cost-of-living, should an adjustment be 
prompted by an increase in the Consumer Price Index, CPI. Referred to 
as the COLA, this important legislation would make an increase 
available to veterans at the same level as the increase provided to 
recipients of Social Security benefits.
  Last year, I was proud to cosponsor the Veterans' Compensation Cost-
of-Living Adjustment Act of 2012, which provided a 1.7 percent increase 
in veterans' compensation. The annual COLA legislation is so important 
because it impacts vital benefits, including veterans' disability 
compensation and dependency and indemnity compensation for surviving 
spouses and children. In fiscal year 2014, it is projected that over 
4.2 million veterans and survivors will receive compensation benefits.
  As a longstanding advocate of our Nation's veterans, I understand the 
critical nature of these benefits as many recipients depend upon these 
tax-free payments to feed their families, heat their homes, pay for 
prescription drugs, and to provide for the needs of spouses and 
children. We have an obligation to the men and women who have 
sacrificed so much to serve our country and who now deserve nothing 
less than the full support of a grateful Nation. The COLA brings us one 
step closer to fulfilling our Nation's promise to care for our brave 
veterans and their families.
  We also must continue to ensure that these benefits are not 
diminished by the effects of inflation. For this reason, I strongly 
oppose the President's proposal to adopt the chained CPI. I am joined 
in opposition by nearly every major veterans' organization in America. 
The Gold Star Wives, The American Legion, Veterans of Foreign Wars, 
Disabled American Veterans and many, many more all oppose the chained 
CPI.
  I will do everything within my power as Chairman of the Veterans' 
Affairs Committee to ensure we honor the promise we made to veterans 
and survivors. It is important that this country address our budget 
deficit, but there are fairer ways to do it than on the backs of 
disabled veterans--men and women who have already sacrificed so much 
for their country.
  I ask my colleagues to join with me in honoring the promise that has 
been made to our Nation's veterans. We cannot allow this misguided 
attempt to balance the budget on the backs of those who have so proudly 
served our Nation diminish the benefits provided to veterans and their 
survivors.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 893

         Be it enacted by the Senate and House of Representatives 
     of the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

         This Act may be cited as the ``Veterans' Compensation 
     Cost-of-Living Adjustment Act of 2013''.

     SEC. 2. INCREASE IN RATES OF DISABILITY COMPENSATION AND 
                   DEPENDENCY AND INDEMNITY COMPENSATION.

         (a) Rate Adjustment.--Effective on December 1, 2013, the 
     Secretary of Veterans Affairs shall increase, in accordance 
     with subsection (c), the dollar amounts in effect on November 
     30, 2013, for the payment of disability compensation and 
     dependency and indemnity compensation under the provisions 
     specified in subsection (b).
         (b) Amounts To Be Increased.--The dollar amounts to be 
     increased pursuant to subsection (a) are the following:
         (1) Wartime disability compensation.--Each of the dollar 
     amounts under section 1114 of title 38, United States Code.
         (2) Additional compensation for dependents.--Each of the 
     dollar amounts under section 1115(1) of such title.
         (3) Clothing allowance.--The dollar amount under section 
     1162 of such title.
         (4) Dependency and indemnity compensation to surviving 
     spouse.--Each of the dollar amounts under subsections (a) 
     through (d) of section 1311 of such title.
         (5) Dependency and indemnity compensation to children.--
     Each of the dollar amounts under sections 1313(a) and 1314 of 
     such title.
         (c) Determination of Increase.--Each dollar amount 
     described in subsection (b) shall be increased by the same 
     percentage as the percentage by which benefit amounts payable 
     under title II of the Social Security Act (42 U.S.C. 401 et 
     seq.) are increased effective December 1, 2013, as a result 
     of a determination under section 215(i) of such Act (42 
     U.S.C. 415(i)).
         (d) Special Rule.--The Secretary of Veterans Affairs may 
     adjust administratively, consistent with the increases made 
     under subsection (a), the rates of disability compensation 
     payable to persons under section 10 of Public Law 85-857 (72 
     Stat. 1263) who have not received compensation under chapter 
     11 of title 38, United States Code.
         (e) Publication of Adjusted Rates.--The Secretary of 
     Veterans Affairs shall publish in the Federal Register the 
     amounts specified in subsection (b), as increased under 
     subsection (a), not later than the date on which the matters 
     specified in section 215(i)(2)(D) of the Social Security Act 
     (42 U.S.C. 415(i)(2)(D)) are required to be published by 
     reason of a determination made under section 215(i) of such 
     Act during fiscal year 2014.
                                 ______
                                 
      By Mr. SANDERS:
  S. 894. A bill to amend title 38, United States Code, to extend 
expiring

[[Page 6523]]

authority for work-study allowances for individuals who are pursuing 
programs of rehabilitation, education, or training under laws 
administered by the Secretary of Veterans Affairs, to expand such 
authority to certain outreach services provided through congressional 
offices, and for other purposes; to the Committee on Veterans' Affairs.
  Mr. SANDERS. Mr. President, as the Chairman of the Veterans' Affairs 
Committee, I am committed to ensuring we provide our Nation's veterans 
the opportunities they need to successfully transition back to civilian 
life. One of the programs afforded to veterans to assist them during 
this difficult time is the Department of Veterans Affairs' work-study 
program.
  VA's work-study program provides veterans participating in several VA 
educational, vocational, and rehabilitation programs the opportunity to 
work alongside school certifying officials and State and Federal 
employees to assist veterans with VA benefits and services. In fiscal 
year 2012, this program assisted more than 10,000 veterans, who 
received approximately $25.7 million in work study payments. Under 
current law, this program is set to expire this year.
  I am proud to introduce legislation that would extend VA's work-study 
program for three more years. This legislation would allow veterans to 
continue doing such important activities as conducting outreach 
programs with State Approving Agencies; working with a National 
Cemetery or a State Veteran's Cemetery; assisting in caring for 
veterans in State Homes; and working with school certifying officials, 
claims processors, and other state and federal employees to provide 
much needed benefits and services to our Nation's heroes.
  VA has determined work-study participants do not have the authority 
to work in congressional offices, despite their successful service in 
such offices in the past. These veterans were critical to Congress' 
efforts to understand the needs of our Nation's veterans. They used 
congressional resources and personal experience to help veterans access 
earned benefits and services. This legislation would allow veterans to 
work in congressional offices to assist other veterans with casework 
issues, help congressional staff address the unique challenges facing 
our newest generation of veterans, and develop the knowledge and 
experience needed to successfully transition into the civilian 
workforce.
  Our veterans have sacrificed so much in defense of this country. They 
deserve a seamless transition when they look to return to civilian 
life. This legislation would expand a program that has been so vital in 
preparing veterans to succeed in the civilian workforce.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                 S. 894

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. EXTENSION AND EXPANSION OF AUTHORITY FOR CERTAIN 
                   QUALIFYING WORK-STUDY ACTIVITIES FOR PURPOSES 
                   OF THE EDUCATIONAL ASSISTANCE PROGRAMS OF THE 
                   DEPARTMENT OF VETERANS AFFAIRS.

       (a) Extension of Expiring Current Authority.--Section 
     3485(a)(4) of title 38, United States Code, is amended by 
     striking ``June 30, 2013'' each place it appears and 
     inserting ``June 30, 2016''.
       (b) Expansion to Outreach Services Provided Through 
     Congressional Offices.--Such section is further amended by 
     adding at the end the following new subparagraph:
       ``(K) During the period beginning on June 30, 2013, and 
     ending on June 30, 2016, the following activities carried out 
     at the offices of Members of Congress for such Members:
       ``(i) The distribution of information to members of the 
     Armed Forces, veterans, and their dependents about the 
     benefits and services under laws administered by the 
     Secretary and other appropriate governmental and non-
     governmental programs.
       ``(ii) The preparation and processing of papers and other 
     documents, including documents to assist in the preparation 
     and presentation of claims for benefits under laws 
     administered by the Secretary.''.
       (c) Annual Reports.--
       (1) In general.--Not later than June 30 each year, 
     beginning with 2014 and ending with 2016, the Secretary of 
     Veterans Affairs shall submit to Congress a report on the 
     work-study allowances paid under paragraph (1) of section 
     3485(a) of title 38, United States Code, during the most 
     recent one-year period for qualifying work-study activities 
     described in paragraph (4) of such section, as amended by 
     subsections (a) and (b) of this section.
       (2) Contents.--Each report submitted under paragraph (1) 
     shall include, for the year covered by such report, the 
     following:
       (A) A description of the recipients of such work-study 
     allowances.
       (B) A list of the locations where qualifying work-study 
     activities were carried out.
       (C) A description of the outreach conducted by the 
     Secretary to increase awareness of the eligibility of such 
     work-study activities for such work-study allowances.
                                 ______
                                 
      By Ms. WARREN:
  S. 897. A bill to prevent the doubling of the interest rate for 
Federal subsidized student loans for the 2013-2014 academic year by 
providing funds for such loans through the Federal Reserve System, to 
ensure that such loans are available at interest rates that are 
equivalent to the interest rates at which the Federal Government 
provides loans to banks through the discount window operated by the 
Federal Reserve System, and for other purposes; to the Committee on 
Health, Education, Labor, and Pensions.
  Ms. WARREN. Mr. President, on July 1, the interest rate on new 
federally subsidized student loans is set to double from 3.4 to 6.8 
percent. That means unless Congress acts, for millions of young people 
the cost of borrowing money to go to college will double.
  The student debt problem in this country is a quiet but growing 
crisis. Today's graduates collectively carry more than $1 trillion in 
debt--more than all the outstanding credit card debt in the whole 
country. Doubling the interest rate on new student loans will just 
increase the pressure on our young people.
  Keep in mind: these young people didn't go to the mall and run up 
charges on a credit card. They worked hard, they stayed in class, they 
learned new skills, and they borrowed what they needed to pay for their 
education. Their education will improve their opportunities in life, 
but their education will not just help these students. When they 
acquire more skills, these students help us build a strong and 
competitive economy and they strengthen our middle class.
  Student interest rates are set to double in less than 2 months, but 
so far this Congress has done nothing--nothing--to address this 
problem. Some people say that we can't afford to help our kids through 
school by keeping student loan interest rates low. But right now, as I 
speak, the Federal Government offers far lower interest rates on loans, 
every single day--they just don't do it for everyone.
  Right now, a big bank can get a loan through the Federal Reserve 
discount window at a rate of about 0.75 percent. But this summer a 
student who is trying to get a loan to go to college will pay almost 7 
percent. In other words, the Federal Government is going to charge 
interest rates that are nine times higher than the rates for the 
biggest banks--the same banks that destroyed millions of jobs and 
nearly broke the economy. That isn't right. And that is why I am 
introducing legislation today to give students the same deal that we 
give to the big banks.
  The Bank on Students Loan Fairness Act would allow students eligible 
for federally subsidized Stafford loans to borrow at the same rate the 
big banks get through the Federal Reserve discount window. For 1 year 
the Federal Reserve would make funds available to the Department of 
Education to make loans to students at the same low rates offered to 
the big banks. This will give students relief from high interest rates 
while giving Congress a chance to find a long-term solution.
  Some may say we can't afford this proposal. I would remind them the 
Federal Government currently makes 36 cents in profit for every $1 it 
lends to students. Add up those profits and you'll find next year 
student loans will bring in $34 billion. Meanwhile, the banks pay 
interest that is one-ninth of the amount students will be asked to

[[Page 6524]]

pay. That is just wrong. It doesn't reflect our values. We shouldn't be 
profiting from our students who are drowning in debt while we are 
giving a great deal to the big banks. We should be investing in our 
young people so they can get good jobs and grow the economy, so let's 
give them the same great deal the banks get.
  Some explain that we give banks exceptionally low interest rates 
because the economy is still shaky and banks need access to cheap 
credit to continue the recovery. But our students are just as important 
as banks to a strong recovery, and the debt they carry poses a serious 
risk to that recovery. In fact, in March of this year, the Federal 
Reserve said because of the economic impact on family budgets, high 
levels of student debt pose a risk to our shaky economic recovery.
  If the Federal Reserve can float trillions of dollars to large 
financial institutions at low interest rates to grow the economy, 
surely they can float the Department of Education the money to fund our 
students, keep us competitive, and grow our middle class.
  Let's face it, banks get a great deal when they borrow money from the 
Fed. In effect, the American taxpayer is investing in those banks. We 
should make the same kind of investment in our young people who are 
trying to get an education. Lend them the money and make them pay it 
back, but give our kids a break on the interest they pay. Let's bank on 
students.
  The Bank on Students Loan Fairness Act is my first stand-alone bill 
in the Senate. I am introducing this bill because our students are 
facing a crisis. We cannot stand by and simply watch. This is about our 
students, our economy, and our values. The Bank on Students Loan 
Fairness Act is a first step toward helping young people who are 
drowning in debt. Unlike the big banks, students don't have armies of 
lobbyists and lawyers. They have only their voices. And they call on us 
to do what is right.
  I thank the Chair.
                                 ______
                                 
      By Mr. REED (for himself and Mr. Durbin):
  S. 909. A bill to amend the Federal Direct Loan Program under the 
Higher Education Act of 1965 to provide for student loan affordability, 
and for other purposes; to the Committee on Health, Education, Labor, 
and Pensions.
  Mr. REED. Mr. President, I am pleased to introduce the Responsible 
Student Loan Solutions Act with Senator Durbin to offer a long-term 
approach to setting student loan interest rates.
  Congress must take swift action to prevent the doubling of the 
interest rate on need-based loans on July 1, 54 days away. We also need 
a new mechanism for setting interest rates on all federal student loans 
for the long term so that students and taxpayers are protected, and we 
need to take the time to get it right.
  In April, I introduced the Student Loan Affordability Act to keep the 
rate on subsidized loans at 3.4 percent for the next 2 years. This 
would give Congress time to debate a long-term solution as part of the 
reauthorization of the Higher Education Act.
  Today, I am introducing legislation with Senator Durbin and 
Congressman Tierney and Congressman Courtney to overhaul the mechanism 
for setting the interest rates on federal student loans. Instead of 
setting a numerical rate in law, which quickly becomes out of sync with 
the economic and interest rate environment, or locking borrowers into a 
fixed rate with no opportunity to refinance when rates drop, our 
proposal will offer adjustable rate loans for students and parents with 
the protection of a cap on the maximum interest rate that could be 
charged during periods of high interest rates.
  In today's low interest rate environment, the fixed rates for student 
loans are too high, resulting in student loans generating a profit for 
the Federal Government. If we would have maintained the variable rate 
for student loans that was in law before 2006, the interest rate for 
students in repayment on their loans would be 2.39 percent this year. 
At today's fixed rates, they will pay 3.4 percent for subsidized loans 
and 6.8 percent for unsubsidized loans. The Federal Government provides 
student loans to increase the number of Americans who attain college 
degrees, not to generate revenue. Yet, according to CBO estimates, the 
Federal Government will save more than 36 cents for every dollar lent 
in the student loan programs for fiscal year 2013. CBO projects that 
the student loan programs will continue to generate savings on the 
backs of students through fiscal year 2023. We need to change this.
  The Responsible Student Loan Solutions Act will offer adjustable rate 
loans for students and parents with a cap on the maximum interest rate 
that could be charged to protect borrowers during periods of high 
interest rates. Interest rates for need-based, subsidized loans will be 
capped at 6.8 percent. Rates for unsubsidized and parent loans will be 
capped at 8.25 percent. Rates will be set every year based on the 91-
day Treasury bill plus a percentage determined by the Secretary of 
Education to cover program administration and borrower benefits. The 
Secretary must set the rate so that the student loan programs are 
revenue neutral.
  The Responsible Student Loan Solutions Act will also correct an 
inequity for undergraduate students who qualify for subsidized loans. 
Currently, a dependent undergraduate student can borrow up to $31,000 
total. However, the maximum amount that can be subsidized is $23,000, 
which means that needy students often have to resort to more expensive 
unsubsidized loans to finance a part or the remainder of their 
education costs. The Responsible Student Loan Solutions Act will allow 
borrowers with demonstrated financial need to have up to the full loan 
limit in the lower cost subsidized program.
  Finally, the Responsible Student Loan Solutions Act will allow 
borrowers with high fixed-rate federal student loans to refinance those 
loans into the new variable rate loan with a cap. This could be a real 
help to borrowers trying to make ends meet, considering that, under 
current conditions, rates calculated under a bill would be much lower 
than the fixed rates for unsubsidized loans 6.8 percent, PLUS loans 
made under the old bank-based program, 8.5 percent, and PLUS loans made 
through the Federal Direct Loan program 7.9 percent.
  We need a multi-faceted approach to solving our student loan debt 
crisis, which reports from the Federal Reserve and others show is a 
drag on our economy. We cannot allow this generation of Americans to 
flounder, unable to buy a home or a car or secure credit or start a 
family under the weight of student debt.
  We need to keep rates low in the short term--that means taking quick 
action to keep the rate from doubling in July. It also means over the 
long-term, setting rates in a way that does not add to the growth of 
student debt. I encourage our colleagues to join Senator Durbin and me 
in cosponsoring the Responsible Student Loan Solutions Act to put in 
place a long-term approach to setting student loan interest rates that 
is fair to students and taxpayers. I also urge our colleagues to 
support taking immediate steps to reassure students and families that 
the rate on subsidized loans will not double this July.

                          ____________________