Pingree Says Congressional Republicans Blocking Plan to Keep Student Loan Rates Low

Press Release

Congresswoman Chellie Pingree slammed the failure of Congressional Republicans to pass legislation that would have prevented student loan rates from rising and instead passing a bill that would make the interest rate onstudent loans adjustable up to 10.5%. Because Congress has failed to act, interest rates for federal student loans went from 3.4% to 6.8% today.

"Congress could have done the right thing and kept student loan rates at 3.4% but instead House Republicans pushed through a bill thatwould drive up loan payments, make the cost of college unpredictable and would profit off of students and their families in the name of deficit reduction," Pingree said.

The bill passed by House Republicans would generate $3.7 billion for the government over ten years, according to the non-partisan Congressional Budget Office.

Pingree has joined a number of her colleagues in an attempt toforce a vote on a bill that would keep student loan rates at 3.4%.

Student loan debt has doubled in the last ten years, to over $19,000 on average. It's now the second biggest source of household debt behind home mortgages.

Pingree signed a discharge petition for a bill that would freeze federal student loans at the current 3.4% rate. House leadership would be forced to hold a vote on the bill if at least 218 Representatives sign the petition. Currently there are 186 signatures.

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