To help stop Congress from rushing into a bad permanent deal for students, new Senate (S. 1238) and House (H.R. 2574) bills would keep subsidized loans at 3.4% for one more year. Introduced in the Senate by Jack Reed, Kay Hagan and 37 other senators, and by Representative Miller in the House, the bills fully pay for themselves by closing a tax loophole.
Senate Majority Leader Harry Reid has scheduled a vote on S. 1238 this Wednesday. If passed, it will return subsidized loan rates to 3.4% starting July 1. Make sure your Senators and Representatives hear from you today about how important it is to keep student loans affordable by reversing the doubling of rates and supporting both S. 1238 and H.R. 2574!
Amazingly, many of the long-term proposals that have been put forward would actually be worse for students than rates doubling to 6.8%!
I'm writing to ask you to cosponsor the Reed-Harkin bill (S. 953) and support their amendment to stop interest rates on subsidized Stafford students from doubling on July 1 from 3.4% to 6.8%. Their common-sense solution would freeze student loan interest rates for two years and pay for itself by closing unnecessary tax loopholes. With less than five weeks until student loan rates are set to double, their amendment would protect students while giving Congress and the Administration time to develop comprehensive reforms that truly keep federal student loans affordable for both students and taxpayers.
Rising college costs and student debt burdens are serious problems for students, their families, and the economy as a whole. Our nation needs an educated workforce that can still afford to buy homes, start families, create businesses, and save for retirement.
Please support the Reed-Harkin bill to keep college and federal loans affordable instead of driving students deeper into debt.