Smarter Solutions for Students Act

Floor Speech

BREAK IN TRANSCRIPT

Mr. WELCH. I thank the gentleman.

Mr. Speaker, I rise today in opposition to the Making College More Expensive Act.

Mr. Speaker, what we're doing is just not right. The Federal Government is borrowing money at 1.8 percent. Then we're lending it--now--at 3.4 percent. If we do nothing, it goes to 6.8 percent. And under this bill, it probably will hit up around 10 percent. We're ripping off kids. I mean, we're making money off of these kids. A confident Nation will invest in the dreams of our young people, it won't crush those dreams.

Why are we doing it? You know what? We're borrowing money as a government at 1.8 percent. The Federal Reserve is lending money to the big money center banks at 0.75 percent. But we're going to be charging up to 8 or 10 percent to our kids? I don't get that.

Families are sitting around the kitchen table having discussions--if they have three kids, which two can we send to college?

BREAK IN TRANSCRIPT

Mr. WELCH. Parents who thought they had equity in their home and were going to be able, after working 30 years of work, to finally take that cruise or that vacation, they're refinancing their home to help their kids. And despite that--which compromises their retirement--their kids are getting out of college in Vermont with an average debt in the range of close to $30,000.

It's tough on the kids, it's tough on the parents, it's bad for our economy, and it's just not right. We borrow, the Federal Government, at 1.8 percent, and we're going to charge up to 8 percent for families? We're lending to the banks at 0.75 percent.

BREAK IN TRANSCRIPT

Source