Smarter Solutions for Students Act

Floor Speech

Mrs. SHAHEEN. Madam President, we all know that on July 1 interest rates for subsidized Stafford loans doubled from 3.4 percent to 6.8 percent. I have twice voted to extend the 3.4-percent rates to protect our Nation's students. Unfortunately, both times we had those votes the extensions were defeated. Without congressional action, the 6.8-percent interest rates will stand as current law.

I think today we are going to vote for a bipartisan compromise to keep student loan interest rates low this year. I plan to vote for that compromise, but I have some concerns about it. I do want to thank my colleagues who have spent many hours coming to an agreement that can pass this body. This is a bipartisan compromise, and I think it is very important we work together to address this issue. While the compromise isn't perfect, our undergrads and our graduate students will be able to go to college this fall with peace of mind knowing the interest rates are well below those they would otherwise face.

In fact, this compromise will save $30 billion in interest debt for students over the next 4 years. Undergraduates borrowing this year will save about $2,000 over the course of their studies, and graduates could save between $4,000 and $9,000.

Today, assuming it is offered, I also plan to vote for the Reed-Warren amendment to lower the cap on interest rates. I would have supported Senator Murray's effort to allocate any resulting savings to shore up Pell grants, which would help fund those students who need it the most, but I understand we are not going to be able to vote on that amendment.

While today's vote is important to keep student rates low for this year's students, I wish to be very clear I do not consider this compromise to be a permanent fix for our students. Included in the bill is a requirement for a study to be conducted by the nonpartisan and independent Government Accountability Office which will analyze the cost of running the student loan program. Once we have the results of the study, we should use the information to determine what course of action is best for our students.

One thing is very clear: Any solution should not come at the expense of our students. Affordable higher education is one of the best investments we can make in our country. It is essential to growing this Nation's economy, to creating jobs, and to protecting the middle class. Our businesses need educated workers to compete in the new global knowledge-based economy.

In an immigration bill the Senate recently passed, which I voted for, we increased the number of highly skilled workers businesses could bring in because there is currently a shortage in this country of those highly skilled workers. I supported that, but that is a crutch, a short-term fix. We should be educating American students for these high-skilled jobs.

In my home State of New Hampshire, the student loan debate is a very important one. Last year a survey found our State had the highest average student debt in the Nation, at $31,408 per student. Nearly three-quarters of New Hampshire students have some amount of student loan debt--the second highest percentage of students with debt in the country. We must protect our students. We should not be trying to solve the fiscal challenges facing this country on the backs of our students. We can't afford to price middle-class families out of a college education.

Studies show adults with degrees from 2- and 4-year colleges have far higher family incomes than adults who have high school degrees. In fact, according to a recent study from Georgetown University, people with bachelor's degrees earn about $1 million more over their lifetimes than those who don't have a college degree. We need to get rid of any barrier that stops students who want to pursue degrees.

Recently, I met a woman named Anne, from Manchester, who had been a recipient of student loans. She was able to go to school and get a degree because of Pell grants. Anne will quickly tell you that without aid she would never have even thought about pursuing a college degree. She is now working in a professional capacity and she is contributing to her community in so many ways. Unfortunately, Anne is now worried about her daughter, a single mother who works part-time and who has limited options to pursue her own dream job because of the high cost of education. Anne told me:

These kids are our future. We cannot limit them in this way; student loans should not be an obstacle that is insurmountable.

She is right. We need to make it easier and more affordable for Americans to go to college, not harder and more expensive.

I also heard from a woman named Patricia. She is 45, a single mother with three children under 18 years of age. She is currently a student at Granite State College who is relying on loans to get her degree. For the past 10 years, she and her family have been in and out of homeless shelters. She grew up as the youngest of nine children in a family where the option of college was never even considered or discussed. Patricia has an incredibly tight family budget. Student loans are critical to her getting a degree and ultimately being able to provide for her family. Sadly, any increase in student loan interest rates could limit Patricia's ability to continue her education.

The bottom line is clear. We all know it. We have to make college more affordable. It is essential for our students, it is essential for their futures, and it is essential for the future of this country. If we expect to compete in this global economy, we have to make sure we have the high-skilled workforce we need, and that means making sure those young people who want to go to college can afford to get that degree. It is just too important for our country's future to fail at this.

I thank the Chair, and I would just note that I will be voting for the bill, but as I said, I certainly hope we are all committed to making greater progress and making college education more affordable.

I yield the floor.

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