E-Newsletter: Making College More Affordable

Statement

Dear Friend,

Moments of bipartisanship can be hard to come by in Washington. However, I am happy to report that last week, President Obama signed into law a bill passed by bipartisan majorities in both chambers of Congress that will reduce the interest rates paid by students with federal student loans.

Last month, when Congress neglected to extend the reduced 3.4% interest rate on federal Stafford loans, college students in Connecticut and across the country faced the prospect of paying double the interest on their loans. But in a rare and remarkable display of bipartisanship, Democrats and Republicans came to the table to pass a bill bringing much-needed relief to current and former students buried under mountains of debt.

The Bipartisan Student Loan Certainty Act of 2013 (H.R. 1911) modifies how interest rates on all federal student loans except Perkins loans are set, returning them to a system under which interest rates are tied to market rates. This will effectively reduce the interest rate on Stafford loans to 3.86%. The bill also includes important protections for borrowers, including interest rates that are fixed for the life of the loan, and caps to protect borrowers from high rates in the future. This new system will apply retroactively to any loans taken out by students since July 1, 2013, when the reduced 3.4% interest rate on Stafford loans doubled to 6.8%. Current and former students should not have to suffer for Congress' failure to act on time.

But our work is not done: we must continue working to find ways to make college and training programs more affordable. A higher education is becoming too expensive, too quickly. The jobs of tomorrow, especially the good jobs, will require training beyond high school. A quality education system is essential to a strong middle class, which in turn is the engine of our economic growth. Our economic success, then, depends on a well-educated and well-trained workforce. If we want America to remain competitive, we must make college - including community colleges and vocational schools - more affordable. I am encouraged by the bipartisan manner in which this bill was passed, and it is my hope that last month's vote is a harbinger of more successful negotiations to come.

In the weeks and months ahead, I will continue working with both parties to increase access to a quality higher education.

Sincerely,
Jim

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