Press Releases

05/24/13

FOR IMMEDIATE RELEASE
May 23, 2013



Washington, DC – Congresswoman Donna F. Edwards (MD-4) released the following statement today on the Republican student loan bill, H.R. 1911. On July 1st, student loan rates will double from 3.4 percent to 6.8 percent if Congress fails to act. However, rather than working with Democrats to prevent this increase, the Republican Majority introduced legislation which, according to the nonpartisan Congressional Research Service,  would in fact make college more expensive for students and parents than if Congress did nothing. The bill would set variable interest rates for student loans tied to 10-year Treasury notes +2.5 percent for Stafford and +4.5 percent for PLUS loans. Under the Republican bill, students who borrow the maximum amount of subsidized and unsubsidized Stafford loans over five years would pay nearly $2,000 more in interest costs than if interest rates doubled. The bill passed the House by a vote of 221-198.

“America’s families simply cannot afford the Republican solution to student loan rates. That is why I proposed two amendments to reduce the cap for Stafford and PLUS loans, and further reduce the cap for Stafford loans for students pursuing the science, technology, engineering and mathematics (STEM) fields. Our economy requires that we curtail unaffordable student loan debt while incentivizing students to join a workforce that will ensure the United States’ competitiveness in the 21st century. Republicans rejected both these ideas, but I urge them to reconsider as Congress works towards a long-term higher education bill.

“My decision to attend Wake Forest University then law school came at a cost of $100,000, a quarter of that was a result of interest and service fees. I understand personally that we need a short and long-term solution to college affordability, but it is irresponsible to, at a time when a college education is more important and expensive than ever, to place more of a burden on our students and parents.”

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