Stop Student Loan Interest Rates from Doubling

Floor Speech

Mr. TONKO. Mr. Speaker, I rise today to sound a warning: college could become even more expensive.

While it's true that a recent report from the College Savings Plan Network put the value of a 4-year degree at $570,000 more than a high school education would provide over a lifetime of work, paying for loans to go to school is a ticking timebomb.

On July 1, federally subsidized student loan interest rates will double for low- and middle-income families from 3.4 percent to, yes, 6.8 percent. About 8 million students nationwide will be affected by this change. For a student that takes out $23,000 in loans over the course of a 4-year degree, this would mean paying back an additional $11,000 over a 20-year payback period.

But it doesn't have to be this way. This body can act. It can act before July 1 to stop interest rates from doubling.

I stand here today to urge action to stop student loan interest rates from doubling overnight. Our Nation's young people face enough hurdles that range from student debt to finding a job to starting a career. They shouldn't have to worry about this body adding to the list.

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