How the GOP Bill to Address Student Loan Interest Rates Really Works

May 22, 2013 Issues: Education

This week the House is set to debate a Republican bill (H.R. 1911) that will make college more expensive by charging students and families nearly $4 billion more in higher interest payments for their loans.

With mounting college costs and student debt, this is exactly the wrong solution for the nation’s students and families. Democrats on the Education and the Workforce Committee have just released a video to explain how this policy would work for students and parents who rely on student loans to pay for college:

 

 

Just last week, the independent, nonpartisan Congressional Research Service (CRS) released a report that shows that H.R. 1911 will increase the cost students and families pay for a college education. CRS found that student and families would pay higher interest costs under H.R. 1911 than they do today – even if interest rates doubled as scheduled for the neediest students in July.

It is in the nation’s long-term economic interest to ensure that qualified students are able to afford and access institutions of higher learning. Unfortunately, the Republican proposal doesn’t fit the bill and will only pile on more debt on students already at record levels, making college more expensive.

H.R. 1911: the Making College More Expensive Act.

More on H.R. 1911: http://democrats.edworkforce.house.gov/issue/student-loans

More on CRS’s report: http://democrats.edworkforce.house.gov/press-release/republicans-pass-legislation-make-college-more-expensive-students-and-families