Rep. Mike Thompson Votes NO on House Majority Bill That Would Increase Student Debt by $3.7 Billion
May 23, 2013
Thompson’s Alternative Bill Would Take Effective Action to Prevent Student Loan Rates from Doubling on July 1
U.S. Rep. Mike Thompson (CA-5) today voted against H.R. 1911, the House Majority's Making College More Expensive Act, which would make college more expensive for students and families by forcing them into loans with interest rates that fluctuate year by year. This would further compound the student debt crisis. According to the nonpartisan Congressional Budget Office, the bill would charge millions of students and families $3.7 billion over the next decade in additional interest payments relative to current law.
According to the nonpartisan Congressional Research Service, the House Majority's bill is even worse for students and families than allowing interest rates to double on July 1st as currently scheduled. Under H.R. 1911, 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.
“Our students and families deserve better than a bill that makes many students pay higher interest payments than they would if Congress did nothing and interest rates doubled,” said Thompson. “Total student debt currently stands at $1.1 trillion, greater than credit card debt. This bill would increase that debt. Instead we should pass the bill that I co-authored which would prevent student loan interest rates from doubling on July 1st and would save hard working families millions of dollars.”
Under the House Majority's bill, interest rates on loans would be reset every year. So, the interest rate on a loan taken out next year by a freshman may start off low, but she doesn't get to keep that interest rate for the life of the loan. It will change every year, potentially skyrocketing.
The House Marjory's Leadership refused to allow the House to consider the Democratic bill co-sponsored by Thompson to block student loan rates from doubling on July 1st.
This bill, H.R. 1433, the Student Loan Relief Act, continues to allow college students to benefit from historically low interest rates by freezing the current low 3.4 percent rate on subsidized Stafford loans for the next two years.
“The one essential element to our nation's long-term economic success is education. We need to work together to keep college costs down,” said Thompson.
Congressman Mike Thompson is proud to represent California's 5th Congressional District, which includes all or part of Contra Costa, Lake, Napa, Solano and Sonoma Counties. He is a senior member of the House Ways and Means Committee and the House Permanent Select Committee on Intelligence. Rep. Thompson is also a member of the fiscally conservative Blue Dog Coalition and chairs the bipartisan, bicameral Congressional Wine Caucus.
According to the nonpartisan Congressional Research Service, the House Majority's bill is even worse for students and families than allowing interest rates to double on July 1st as currently scheduled. Under H.R. 1911, 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.
“Our students and families deserve better than a bill that makes many students pay higher interest payments than they would if Congress did nothing and interest rates doubled,” said Thompson. “Total student debt currently stands at $1.1 trillion, greater than credit card debt. This bill would increase that debt. Instead we should pass the bill that I co-authored which would prevent student loan interest rates from doubling on July 1st and would save hard working families millions of dollars.”
Under the House Majority's bill, interest rates on loans would be reset every year. So, the interest rate on a loan taken out next year by a freshman may start off low, but she doesn't get to keep that interest rate for the life of the loan. It will change every year, potentially skyrocketing.
The House Marjory's Leadership refused to allow the House to consider the Democratic bill co-sponsored by Thompson to block student loan rates from doubling on July 1st.
This bill, H.R. 1433, the Student Loan Relief Act, continues to allow college students to benefit from historically low interest rates by freezing the current low 3.4 percent rate on subsidized Stafford loans for the next two years.
“The one essential element to our nation's long-term economic success is education. We need to work together to keep college costs down,” said Thompson.
Congressman Mike Thompson is proud to represent California's 5th Congressional District, which includes all or part of Contra Costa, Lake, Napa, Solano and Sonoma Counties. He is a senior member of the House Ways and Means Committee and the House Permanent Select Committee on Intelligence. Rep. Thompson is also a member of the fiscally conservative Blue Dog Coalition and chairs the bipartisan, bicameral Congressional Wine Caucus.
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Issues:Education