[Congressional Record (Bound Edition), Volume 160 (2014), Part 6]
[House]
[Page 7610]
[From the U.S. Government Publishing Office, www.gpo.gov]




                              {time}  1045
                        STUDENT LOAN REFINANCING

  The SPEAKER pro tempore. The Chair recognizes the gentleman from 
Massachusetts (Mr. Tierney) for 5 minutes.
  Mr. TIERNEY. Mr. Speaker, I rise in support of legislation that I 
filed in the House this week and Senator Elizabeth Warren filed in the 
Senate. It would enable tens of millions of students, parents, and 
families to responsibly refinance their student loans.
  More and more, constituents are calling, they are emailing, and even 
approaching me on the street to share their stories of how they are 
buried in student loan debt. This debt is not only causing them to put 
on hold life decisions, such as moving out of their parents' house or 
buying a car or purchasing a home and getting married, but it is also 
leading some to question whether or not they should even enroll in 
college or to consider dropping out because of the pure shock factor of 
these looming college loans.
  A young woman from Boxford, Massachusetts, wrote recently. She said 
to me:

       I pay more than the minimum balance every month. I 
     sacrifice daily for my loans. I live at home and have a 50-
     minute commute to work every day because I cannot afford to 
     live on my own or even with roommates. I cannot have the 
     dreams that I have dreamed all my life. I am 23, and I am 
     already telling myself that I can't own a house, that I will 
     probably never have children because I can't afford to bring 
     them into the world and take care of them when I can't even 
     afford to live myself. That is what I live with every day, 
     the anger, the depression, and the disbelief that I am 
     forever stuck.

  Parents are calling and writing me about the anxiety and concern they 
have about the debt their sons and daughters have accumulated. Some 
parents have even delayed their retirement or made early withdrawals 
from their 401(k) just to help their children's student debt problem.
  A mother from Middleton, Massachusetts, wrote to me and said:

       I have two children with multiple student loans. It is 
     difficult enough to graduate, find a job in the field they 
     desire and to pay loans, rent, and bills, et cetera. Please 
     do all that you can to make sure rates are not increased. My 
     children may never afford to buy a house and live the 
     American Dream because of college student loan debt.

  Mr. Speaker, these are just two examples in my district. There are 
millions of others just like them throughout this country.
  Outstanding student loans now total more than $1.2 trillion, 
surpassing total credit card debt. An estimated 71 percent of college 
seniors had debt in 2012, with an average outstanding debt of $29,400 
for those who borrowed to get a bachelor's degree.
  Last year, Congress sought to address the issue of student loan 
rates, but I and several others believed that final bill didn't go far 
enough. One of the deficiencies was that it only applied to new student 
debt. It did nothing for the nearly 40 million Americans with existing 
student debts.
  Our bill simply rights this wrong and simply gives students the 
opportunity to refinance their loan debt at the same low rate being 
offered to new borrowers in the student loan program. Homeowners and 
businesses are often able to refinance their debts. Shouldn't student 
borrowers be able to do the same? We certainly think so.
  Our legislation is also deficit-neutral and paid for by implementing 
the so-called Buffett rule, which holds millionaires and billionaires 
accountable to pay their fair share in taxes.
  Student loan debt is a crisis all throughout our country. It is 
making a generation of Americans feel like they are ``forever stuck,'' 
in the words of my constituent.
  But if the moral imperative isn't enough to act, we should be mindful 
of the benefits to the economy as a whole for allowing students to 
refinance their loans. The nonpartisan Congressional Research Service 
produced an analysis of our bill indicating that certain borrowers 
could save thousands of dollars. This is a savings that no doubt would 
be invested back into the economy.
  Last year, the Center for American Progress estimated that the 
refinancing of just Federal student loans would have pumped $21 billion 
into the economy.
  Mr. Speaker, our bill will benefit millions of students and their 
families, and it will boost our economy. It deserves the immediate 
action of this House.

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