• Voting Record

    Gwen Moore

    Voting Record

    LOADING VOTES....
Print

Gwen Moore sounds alarm on student loan crisis


By Patrick Simonaitis

Rep. Gwen Moore (D-Wis.) called for the crafting of a long-term solution to student debt Monday, saying it is necessary to deal with "the student debtor crisis" before America as a whole faces dire economic consequences.

"This is a national crisis for everybody, not just student debtors," an impassioned Moore said in a news conference in the Milwaukee Area Technical College Student Center. "It's time to take action and stand up not only for these students, but stand up for the American economy."

On July 1, students attending school on subsidized Stafford student loans — those that are awarded on the basis of economic need — face a doubling of their interest rates from 3.4% to 6.8% if Congress does not act to maintain the current rate. Roughly 7 million students would be affected by the increase. Student debt in total stands at a record high $1.1 trillion, surpassing auto loan, credit card and home equity debt, said Moore, a Milwaukee Democrat.

"This year and every year Congress doesn't act, student borrowers face a thousand dollars more in debt," she said. "Failure to act now will add $4.3 billion to students' debt burden for next year's loans."

Last week, the Senate killed two plans to head off the rise in student loan interest rates. Democrats wanted a two-year extension of the rates while lawmakers come up with an overhaul of the student loan process. Republicans wanted to link interest rates to economic conditions, adjusting interest each year with rates based on the 10-year Treasury note.

Jim Carpenter, an economics instructor for the college, said he was attending the news conference because he sees growing student loan debt as an important economic issue affecting more than just students in debt.

"If people graduating from college came out with more to spend on consumer goods and less on the repayment of student loans, that'd be a serious stimulus to the economy," Carpenter said. "Banks have been getting loans at a near 0% interest rate. You have to ask why that kind of rate can't be applied to students."

In addition to Moore, several supporters of keeping the subsidized loan rates low addressed the audience, including Luz Sosa, a part-time economics instructor for MATC and a Marquette University graduate. Sosa talked about her experience with a large student loan, saying she is obligated to pay $156,000 over 30 years after taking $70,000 in loans at a 6.4% interest rate to attend the private university.

"I'm grateful that this financial aid enabled me to be a teacher in the first place," Sosa said. "But this interest rate really restricts future options in life."

Sosa said the interest on her loans, which more than doubled the amount she owes for her education, has restricted her from pursuing a PhD. She also said that she has had difficulty in beginning to save for her son's college education because of her debt.

 

To view this article online, please click here.