Από: Senator Robert P. Casey, Jr. [[email protected]] Αποστολή: Τετ 10/07/2013 02:06 Προς: vassilios gikas Κοιν.: Θέμα: Response from Senator Casey Συνημμένα: Dear Prof. Gikas: Thank you for taking the time to contact me about legislation to extend the reduced interest rate for subsidized Stafford Loans. I appreciate hearing from you about this issue. I believe that anyone with the drive, fortitude and desire to pursue the opportunities afforded by higher education should be able to realize that dream, regardless of their personal financial situation. Studies have shown that those with college degrees can expect higher lifetime earnings and a lower chance of unemployment than those with lower levels of education. In recent decades, however, tuition rates have grown to levels that threaten to put higher education out of reach for many Americans. As you may know, total student loan debt in the United States has increased greatly in recent years. In the last eight years, total outstanding student loan debt nearly tripled and last year exceeded $1 trillion for the first time. This enormous debt burden, which cannot be erased in bankruptcy proceedings, raises serious concerns about students’ ability to repay and potentially places a significant drag on the economy. On September 7, 2007, I joined 77 Senators in voting for the College Cost Reduction and Access Act, which President George W. Bush signed into law on September 27, 2007. This legislation included a provision that required a gradual decrease in the interest rate for federal subsidized Direct Stafford undergraduate loans. Accordingly, in the five years since, the 6.8 percent rate gradually reduced to 3.4 percent. That provision was set expire in July 2012, at which point interest rates were scheduled to rise again to the original 6.8 percent level. On June 29, 2012, I joined 73 of my fellow Senators in voting for a one-year extension of the 3.4 percent interest rate for new federal subsidized Direct Stafford loans. The extension was paid for by making two changes to pension contributions by employers, as well as by limiting the length of time that college students are eligible for in-school interest subsidies on their loans, to 150 percent of expected length of the program. On July 6, 2012, President Obama signed that legislation into law, under which the extension of reduced interest rates are again set to expire on July 1, 2013. In recent months, several proposals have been put forth to prevent interest rates from rising to 6.8%. President Obama has proposed adjusting the interest rate on Stafford loans to a variable rate, based on the 10-year United States Treasury Bill. On May 8, 2013, Senator Elizabeth Warren of Massachusetts introduced S. 897, the Bank on Students Loan Fairness Act, which would prevent the doubling of the interest rate for federal subsidized student loans for the 2013-2014 academic year by providing funds through the Federal Reserve System. The bill would also ensure that federal subsidized student loans would be available at interest rates equivalent to the interest rates the federal government provides on loans to banks through a discount window operated by the Federal Reserve System. On May 14, 2013, Senator Jack Reed of Rhode Island introduced S. 953, the Student Loan Affordability Act. This legislation would extend the current 3.4 percent interest rate on subsidized Stafford loans for an additional two years. The extension would be fully paid for by closing tax loopholes for holders of certain retirement accounts, non-United States companies, and the oil industry. Additional savings from closing these loopholes would be used for deficit reduction. Both of these bills have been referred to the Senate Committee on Health, Education, Labor and Pensions (HELP), of which I am a member. On May 21, Senator Tom Coburn of Oklahoma introduced S. 1003, the Comprehensive Student Loan Protection Act. This legislation would set interest rates at a rate equal to the rate set for 10-year Treasury bills plus three percent for all loans disbursed after July 1, 2013. On June 6, the Senate held votes to proceed to debate on both the Student Loan Affordability Act and the Comprehensive Student Loan Protection Act. I joined fifty of my colleagues in voting for the Student Loan Affordability Act. Unfortunately, neither measure received the sixty votes necessary to overcome a filibuster. On June 27, Senator Reed introduced the Keep Student Loans Affordable Act of 2013, of which I am a cosponsor. This legislation would extend the 3.4% interest rate for one year, fully paid for by closing a tax loophole on certain inherited retirement accounts. On the same day, Senator Joe Manchin of West Virginia introduced S. 1241, the Bipartisan Student Loan Certainty Act, which would set interest rates at a rate equal to the 10-year Treasury bill rate plus 1.85% for undergraduates, 3.4% for graduate students and 4.4% for PLUS loans. Both pieces of legislation have been placed on the Senate Legislative Calendar. I am disappointed that the Senate was not able to reach an agreement before the July 1 deadline, and I am committed to addressing this problem before students return to school in August. Senators from both parties should come together to reach a compromise that will put students first. I will continue to monitor the personal and fiscal challenges of student loan debt and investigate opportunities to alleviate the situation. As always, I appreciate your views, thoughts and concerns as they assist me in understanding what is important to the people of Pennsylvania. Please feel free to contact me in the future about this or any other matter of importance to you. For more information on this or other issues, I encourage you to visit my website, casey.senate.gov. I hope you will find this online office a comprehensive resource to stay up-to-date on my work in Washington, request assistance from my office or share with me your thoughts on the issues that matter most to you and to Pennsylvania. Sincerely, Bob Casey United States Senator
Posted on: Wed, 10 Jul 2013 05:44:07 +0000
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