Preventing a Rate Hike on Student Loans

Dear Friend,

I wanted to give you an update on an important education and financial aid issue which may affect many Central Coast residents.

Without Congressional action interest rates on Stafford Student loans will double on July 1st.

I am adamantly opposed to the doubling of these rates and am working to keep this from happening.

In California, 572,256 student borrowers would pay nearly a half billion dollars in additional interest payments, over the course of one year, if interest rates are allowed to double from 3.4% to 6.8%.

That’s why I’m co-sponsoring the Stop the Rate Hike Act of 2012 which would hold rates steady at their current rate of 3.4%.

The bill pays for the cost of maintaining the lower interest rate by eliminating taxpayer subsidies to oil and gas companies.

Making sure young people have access to affordable higher education is essential for their success and for our country’s economic success in the 21 st century.

Our young people and their families are already struggling to pay for the ever increasing cost of college, and it would be just plain wrong to let the rates on their loans double.

Still I know that keeping the interest rates low isn’t a silver bullet to higher education affordability – but it is an important step to containing the growing cost of college, which has been skyrocketing in the wake of devastating state budget cuts.

Ensuring that the cost of attending a public university in California isn’t out of reach for all qualified students and their families will require a renewed commitment to investing in higher education.

Please know that I strongly believe in keeping college affordable, as it is absolutely critical in order to ensure that our country has a strong workforce in today’s global economy.

Thank you for the opportunity to share this update on with you. As always, please feel free to pass it along to family and friends.

And you are always welcome to keep in touch by visiting my website, liking my Facebook page, following me on Twitter, or signing up for my e-newsletter.

Sincerely,

Lois Capps
MEMBER OF CONGRESS