Opposing H.R. 1911, Smarter Solutions For Students Act
Mr. Speaker, I rise today in opposition to H.R. 1911, Smarter Solutions for Students Act. This is a truly devastating bill for every working and middle class family trying to achieve the American Dream. If we do nothing before July 1st, we…
Mr. Speaker, I rise today in opposition to H.R. 1911, Smarter Solutions for Students Act.
This is a truly devastating bill for every working and middle class family trying to achieve the American Dream.
If we do nothing before July 1st, we will be passively negligent.
If we pass this will today, we will be actively destroying our competitiveness and economic strength by taking dollars out of the pockets of our workforce.
The bill is as far away from ``commonsense legislation'' as we get. It makes the situation worse by making college education far more expensive!
According a Congressional Research Service report, under this proposal, a student borrowing the maximum loan amounts with a 5 year subsidized loan will pay more than $10,000. Even under the doubled rate of July 1, a student with the same loan would pay less than $9,000. Under the current rate of 3.4 percent, this student pays just over $4,000.
Those massive differences in repayment rates show that this bill was not written with students in mind.
The growing student loan-burden in our country is critical and must be addressed.
According to the Consumer Finance Protection Bureau, student loan debt recently surpassed the $1 trillion mark. The 2010 Survey of Consumer Finances reported that 45 percent of all American families hold outstanding student-loan debt. This was an increase from 33 percent in 2007.
While the majority of student debt is held by people under the age of 35, increasing student debt affects every member of the family, especially in a time when nearly half of bachelor's degree holders under the age of 25 are unemployed.
However, addressing increased interest costs is only part of the solution. We need to begin to address the exorbitant prices of higher education. I understand that universities are trying to cope with the decreases in government funding and declining contributions as a result of the tough economic times. However, these institutions also have a role to play in ensuring that education is accessible and affordable to all students. If these institutions would like the government to continue to invest in students, they should do so as well, by doing everything in their power to keep tuition costs low.
I cannot stress enough the importance of making college education accessible. We all agree that education transforms people's lives. Education is the key to breaking the cycle of poverty, crime, and violence in any community. It is the engine that will propel our families into the middle class and allow us to reinvigorate and grow our economy. We must act swiftly to remedy this unsustainable situation.