Statements on Introduced Bills and Joint Resolutions

Floor Speech

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Ms. WARREN. Mr. President, I rise today to announce the introduction
of the Bank on Students Emergency Loan Refinancing Act of 2015. This
bill will allow student loan borrowers to take advantage of today's
lower interest rates, and I urge my colleagues to support it.

Last Congress, Democrats pressed for a similar bill which has strong
support from the Senate and from the public. Every Democrat, every
Independent, and three Republicans voted to move this bill forward.
More than 700,000 people signed petitions in support of student loan
refinancing, but Republicans filibustered the bill, so it didn't pass.
It is time to try again, because a problem that was bad last year has
gotten worse--much worse.

Since last year, nearly 1 million more borrowers have fallen behind
in their payments. Nearly 1 million more are watching their balances
get bigger, not smaller. Nearly 1 million more people are sweating out
how they are ever going to repay their student loan debt.

Last year, student loan debt was an economic emergency. Now, 1 year
later, the emergency is getting worse. Just look at the numbers.
Students are now struggling with $100 billion more debt than 1 year
ago. Since last year, total student loan debt has jumped to $1.3
trillion, and the debt is crushing young people.

Last year, experts at the U.S. Treasury, the Federal Reserve, and the
Consumer Financial Protection Bureau all sounded the alarm on student
debt. This year, the alarm bells are sounding even louder. One year
ago, the Federal Government was projected to take in tens of billions
in profits on the backs of our kids as a result of artificially high
interest rates. One year later, interest rates on new loans are even
higher, and even with millions of people struggling to pay, even after
accounting for administrative and other costs, the Federal Government
is still raking in huge profits on its student loan program.

Despite overwhelming public support for cutting the interest rates on
student loans, Republicans last year refused to even debate this bill.
Republicans said there were other, better ways to tackle student debt,
but Republicans did nothing, nothing except filibuster the only student
loan bill on the table. So tens of millions of borrowers got nothing,
no help at all. Today, millions of borrowers are left with interest
rates of 6 percent, 8 percent, 10 percent, and even higher. Nearly 1
million more borrowers are falling behind, and the Republicans have
done nothing. Nearly 1 million more borrowers are falling behind, and
they are watching their debt load get bigger. Nearly 1 million more
borrowers are falling behind, paying interest rates that produce
obscene profits for the U.S. Government, and the Republicans will not
even debate refinancing student loans.

Why can't people refinance their student loans? When interest rates
are low, homeowners can refinance their mortgages to reduce their
payments. Businesses can refinance their debts. Even governments can
refinance their debts. But student loan borrowers are stuck with their
loans, sometimes at 6 percent, 8 percent, 10 percent, and even higher.

Our proposal is simple: refinance outstanding loans down to 3.9
percent for undergraduates, and a little higher for graduates and PLUS loans. This
single change would give borrowers across this country a chance to save
hundreds--and for some, thousands--of dollars a year. That's real
money--money they can put toward paying down the balance on their debt,
saving for a home, buying a car--money they can put toward building a
solid future.

This bill doesn't add one dime to the deficit. It is fully paid for
by closing up a tax loophole that allows millionaires and billionaires
to pay a lower tax rate than middle class families.

If Republicans don't like that way to pay for the student loan bill,
here's another idea. Senators Reed and Blumenthal have advanced a bill
that would close a different tax loophole. They want to end the tax
breaks for executive bonuses that are bigger than a million dollars.

I say to my Republican colleagues, if you don't like that way to pay
for the student loan bill, there are other options as well. Let's sit
down and talk about it, but don't close your eyes and pretend this
isn't happening. Don't turn your backs on the 40 million Americans with
student loan debt. Don't do nothing.

Refinancing student loans will not fix everything that is wrong in
our higher education system. We need to cut the price of college. We
need to reinvest in public universities. We need to shore up financial
aid, crack down on for-profit colleges, and provide better protections
on student loans, but let's start by allowing people to refinance their
student loans. Let's start by cutting back on the interest payments
that are sinking young people and holding back this economy.

We could have refinanced student loan debt 1 year ago, but
Republicans said no. Now Americans owe $100 billion more than they did.
Now nearly 1 million more borrowers are falling behind. Now more people
than ever are choking on student loan debt.

By refusing to act, Republicans are sinking the hopes of an entire
generation. It is time for Congress to step up and fix this problem,
before it drags down another million Americans and another and another.
It is time to refinance student loan debt.

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