Student Loans: DelBene Fights to Prevent Cost Increase

Congresswoman Suzan DelBene released the following statement on Thursday’s vote by the House to address the doubling of interest rates for subsidized Stafford loans, which are set to increase from 3.4 percent to 6.8 percent on July 1, 2013.

DelBene offered an amendment to improve the bill by lowering the cap on rates for student loans. Her amendment was blocked from receiving a vote on the floor by House leadership. 

DelBene's statement follows:

“One of my top priorities in Congress is to expand opportunity for working families and help build an economy that works for everyone. Key to this goal is making college affordable and ensuring that hard-working students can get the education needed to compete in a 21st century economy. 

For me, this is personal. Because of student loans and financial aid, I was able to get a great education and build a successful career as an entrepreneur and businesswoman. Unless Congress acts, we face a looming deadline in July that will cause interest rates to double for millions of Americans. 

Disappointingly, the House took up a proposal today that hurts students and families. Instead of making college more affordable, H.R. 1911 increases the costs of a college education and I cannot support it. Shockingly, this bill actually makes student loans more expensive than if Congress did nothing and simply let interest rates double. 

This is irresponsible legislation that buries students and their families in even more debt. This is the wrong approach and our students deserve better. Our immediate focus should be to prevent the July 1st spike in rates, and then work cooperatively to find a long-term, bipartisan solution to make our student loan system more affordable and more sustainable. 

I am proud to be an original co-sponsor of legislation that would maintain low interest rates for subsidized Stafford loans, and I am disappointed that the House leadership did not allow the proposal to receive a vote on the floor. What’s more, leadership didn’t allow the House to consider any amendments to improve today’s flawed legislation, including my proposal to reduce the bill’s caps on student loan interest rates. 

There is still time, however, to prevent the doubling of interest rates and keep college within reach for working families. I will continue to fight for a responsible, common-sense plan that provides relief and stability for millions of students and their families. It’s critical that we find a long-term solution to keep our middle class vibrant and our economy healthy."