Mr. Speaker, I rise today as a proud college instructor of over a decade and perhaps, most importantly, a proud Sun Devil from Arizona State University in Tempe, Arizona, the largest and, yes, the brightest public university in our…
Mr. Speaker, I rise today as a proud college instructor of over a decade and perhaps, most importantly, a proud Sun Devil from Arizona State University in Tempe, Arizona, the largest and, yes, the brightest public university in our country.
May 9 is Graduation Day for many of my students, and while I cannot be with them on their special day, I introduce a bill today in their honor, in honor of their hard work and their future contributions to our community and our economy.
Today, I have introduced the Stability to Ensure the American Dream for Youth Act, the STEADY Act. The STEADY Act extends the 3.4 percent for Stafford student loans until June 30 of 2017.
As we all know, if Congress fails to act by June 30 of this year, the interest rate on student loans will double from 3.4 percent to 6.8 percent. This will have an enormous impact on the cash flow and economic participation of students entering the workforce, starting a family, planing for the future.
In college communities like the one I have the pleasure of representing, the economics of higher education are directly linked to every part of our daily economic activity. Consumer spending, home ownership, and employment opportunity are inexorably tied to the cost of education.
My bill ensures that those who are in college or planning for college can continue to do so without worry of cutting their paychecks by an additional $1,000 of interest a year paid to the Federal Government.
The STEADY Act ensures that they can plan for their future, plan for their family's future, and continue to contribute to our local economy. It allows added stability to get the education they need and find the job they want.
Our communities sent us to Congress to fight for them and get things done. Today I'm thinking of my students who need a voice in this Congress. It's my hope that we will get this done for them.
I think about Ariel Carlos, my student in ASU's School of Social Work. Ariel hopes to give back to our community as a social worker for seniors. He wants to help seniors who have worked and contributed their entire lives, help them continue to do so with health and support.
Ariel and his wife, May, have kids, and they support each other by working hard. Ariel has had to work for a paycheck. He worked hard through his entire college career, taking out student loans along the way so that he and May could care for their family while he studied. At the end of his college career, Ariel found himself with a student loan debt of $45,000.
I would be remiss if I didn't mention that a new social worker in Arizona is likely to start his career making about $30,000 a year or less. For Ariel and his family, an added expense of $1,000 a year means less money for child care, less money for school books, less money for groceries.
$1,000 a year from his family's budget--to pay to the Federal Government--means less spending in our local economy and less savings for the future.
The New York Federal Reserve recently noted that student loan debt is slowing our economy. Those with large student debt participate less in their local economies, delaying home ownership and family planning while forgoing long-term job opportunities. Students who should be planning their lives are instead nervous about their future and concerned about debt impeding their ability to get ahead.
We have the opportunity to set things right for Ariel and May, to maintain a steady road for our economic future, and to make certain that the hard work that goes into our community stays in our community and pays off in our community.
I ask my colleagues to join me today in support of the STEADY Act of 2013.
I thank the gentleman from Wisconsin for yielding.