Press Releases

Today, U.S. Rep. Matt Cartwright took legislative action to force an up-or-down vote on key legislation that would stop the doubling of the interest rate on subsidized Stafford loans on July 1.  The bill in question would freeze the interest rate on these loans at 3.4% for the next two years – giving Congress time to enact comprehensive student loan reform as part of a reauthorization of the Higher Education Act.  Rep. Cartwright joined his colleagues in signing a discharge petition, led by Rep. Joe Courtney (D-CT), to bring up H.R. 1595, the Student Loan Relief Act of 2013.

“This Democratic bill continues to allow college students to benefit from historically low interest rates by freezing the current low 3.4% rate for the next two years,” Rep. Cartwright said.  “Congress must act quickly to prevent the doubling of rates on July 1.  With a majority of new jobs in the next decade requiring a college degree, it is an economic necessity that a higher education remains an opportunity for every student, not a perk for the privileged few.”

Democrats launched this discharge petition to force action on this broadly supported legislation because the Republican Leadership has refused to move forward on the bill.  The Student Loan Relief Act was introduced by Rep. Joe Courtney on April 17, 2013, and has over 150 cosponsors, but Republicans have failed to schedule a hearing or a mark-up on the bill.  A discharge petition requires the House to consider the legislation once a majority of Members of Congress (218) have signed it.

On May 23, House Republicans passed what many call the Making College More Expensive Act, a student loan bill that was even worse for students and families than allowing interest rates to double – with even higher interest payments by students and families.  According to the Congressional Research Service, under the Republican bill, students who borrow the maximum amount of subsidized and unsubsidized Stafford loans over five years would pay nearly $2,000 more in interest costs than if interest rates doubled.  Senate Democrats have said they will not take up this damaging House bill.

“Our students and families deserve better than the House Republican bill that would make many students pay higher interest payments than they would if Congress did nothing and interest rates doubled,” Rep. Cartwright concluded.  “Total student debt currently stands at $1.1 trillion, greater than credit card debt.  Instead of reducing student debt, the GOP bill would actually increase student debt – and leaves students with no solution as interest rates are set to double.”