Rep. Ellison: Student Loan Compromise Increases Future Cost Of College

Statement

Rep. Keith Ellison (D-MN), Co-Chair of the Congressional Progressive Caucus and Chief Deputy Whip, released the following statement after the House of Representatives passed the Student Loan Certainty Act, a bill that ties student loan interest rates to 10-year Treasury bonds and caps interest rates for undergraduates at 8.5%.

"The Student Loan Certainty Act that passed the House today provides much-needed relief for current college students who saw interest rates on their federal loans double on July 1st. I commend my colleagues who worked hard to achieve this compromise. This bill will help Minnesota's students who will attend college in the fall, 70% of whom rely on federal student loans.

"However, I voted against the bill because it increases the cost of higher education for future students--at a time when college tuition continues to rise and the vast majority of families are struggling with stagnant incomes. The "fix' in the plan means interest rates on student loans could reach 8.5% in the next five years, much higher than the current rate.

"We have a severe college affordability problem in America. Wages are stagnant and the cost of higher education increases every year. The Student Loan Certainty Act makes it harder for future students to get into a college classroom.

"We are undercutting the future opportunities of America's children and compromising our economic vitality with the bill passed today. The Congress should revisit this issue and pass legislation that puts college within reach for all students, regardless of their economic circumstances."

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