Miller: GOP Needs to Correct Vote against Students & Join Effort to Stop Doubling of Student Loan Rates
WASHINGTON – Rep. George Miller (D-CA), the senior Democrat on the House Education and the Workforce Committee, issued the following statement on new legislation that will keep college students’ loan rates from doubling on July 1st.
“Today, we are introducing a bill that would save millions of students and their families from higher student loan debt. As you know, President Obama is calling on Congress to prevent a doubling of interest rates on subsidized Stafford student loans that will kick in on July 1 if Congress does not act. As Jimmy Fallon said, we should listen to our president and help America’s students and their families. Each year Congress does not act, more than seven million students and their families will owe $1,000 more for each year they borrow for college.
“Now, here’s what people need to understand about this very important issue:
“First, under the leadership of Democrats, Congress passed a law in 2007 to cut the interest rate on subsidized Stafford student loans to low-income and middle-income families from 6.8 percent to 3.4 percent. Already college graduates have saved thousands of dollars because of this action. And we did so by taking away federal taxpayers subsidies to banks that were playing the role of middle man. We did not borrow one nickel from the Chinese or anyone else to help our students and their families when we passed that law. We were fiscally responsible.
“Second, under Republican leadership, the House of Representatives voted last month to let the interest rates on these loans double. One Congress, under Democratic leadership, cut the rates in half without increasing the deficit. This Congress has voted to let the rates double. The Ryan Republican Budget not only ends the guarantee of Medicare, cuts taxes for the wealthy, and does nothing to create jobs, but it assumes that interest rates on subsidized Stafford student loans will go back to 6.8 percent.
“In addition, House Republicans just voted this month for another bill to give millionaires and billionaires like Paris Hilton and Donald Trump a huge tax cut. And their tax cut is not paid for. It is fiscally irresponsible. They would have to borrow from the Chinese to give the rich and famous a huge tax cut.
“So, while Republicans are telling college students and their families to fork over another $1,000 for each year of borrowing, they are giving Paris Hilton and Donald Trump $58,000, paid for by the deficit – meaning you, the American taxpayer.
“That’s a pretty stark contrast. One Congress helps students and the middle class and is fiscally responsible. Another Congress hurts students and helps millionaires and billionaires but borrows from the Chinese to pay for it.
“Now, I strongly believe that if we want to help America’s college students and their parents better afford the cost of college, we need to first agree that the rates on subsidized Stafford student loans should not be allowed to double on July 1. Republicans in the House will have to correct their earlier vote that allows the interest rates to double. If they want to join the president and Democrats in the House and the Senate to help students and their families, to save them $1,000 or more, they have to correct their vote on the Ryan Republican budget and join us in solving this problem. You can’t be for the Ryan Republican budget as passed by the House and for stopping the interest rate hike.
“Once we agree on the problem, I am confident we can agree on the solution. There are many good options on how to protect students and their families, and protect the taxpayer. And we need to get this done before July 1.”
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