Miller: Republican Proposal is a Bait and Switch to Tax Students
WASHINGTON– U.S. Rep. George Miller (D-Calif.), the senior Democrat on the Education and the Workforce Committee, issued the following statement today after the Republican majority on the committee released legislation that would tax students working towards obtaining a college credential.
“My concern is how this bill affects students and their families. The fact is, the Republican plan is a nearly $4 billion tax on students and their parents or grandparents. It’s a nearly $4 billion tax on people already struggling to get ahead who believe that a college education is their path forward. Republicans complain about leaving debt for our children to pay but here they are loading nearly $4 billion in debt onto the backs of student and their families right now.
“Their plan comes at a time when student loan debt has surpassed $1.1 trillion dollars. That’s not just a problem for individuals, but also an economic problem; with that level of debt you cannot fully afford to participate in the American Dream of going to school, getting a good job, buying a car, owning a home and starting a family.
“This is just another classic bait and switch scheme: lure you in with a short-term lower rate, but then charge you higher rates in the long-term. A lot more. Under their proposal, based on current economic projections, the interest rate for a low-income freshman entering college next year will be higher when they graduate than what they would be under current law. All borrowers under their plan would see their interest rates soar above what they would be current law, including on loans taken out next year. Their plan makes college more expensive for students and families.
“Time is running out for Congress to stop the July 1 interest rate hike. Students and families need low rates now and into the future. Our economy depends on them accessing lower rates and more affordable loans. Congress can and should work together to help reduce student debt – not tax students and their families to the tune of nearly $4 billion.”
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