DeLauro Statement on Doubling Of Student Loan Interest Rate

Calls for Retroactive Solution, End To PunishingStudents

NEW HAVEN, CT—Congresswoman Rosa DeLauro (D-CT) released thefollowing statement today on the doubling of the subsidized student loaninterest rate. Failure by Congress to stop the doubling means that over sevenmillion students have now seen their rates double to 6.8 percent. DeLauro isthe senior Democrat on the subcommittee responsible for funding the Departmentof Education.

"Congress should take immediate action to retroactively keepthe subsidized student loan interest rate at 3.4 percent. Every American shouldhave the opportunity to get an education and a better life, and it isunthinkable that we are making it harder for them to do that. Well over half ofstudents take out loans, including 68 percent of women. The Republican Majorityshould stop playing games and work with Democrats on a real solution to keephigher education affordable for our hard working students."

Last year, student debt topped $1 trillion for the firsttime and now stands at $1.1 trillion. Two-thirds of the Class of 2010 graduatedwith student loan debt; the average was $25,000. Every year Congress fails toact will cost students with subsidized loans $1,000 in additional interestpayments. In the recently concluded academic year, there were 73,051 studentborrowers in Connecticut who will be impacted by this increase.

These facts are staggering on top of the fact youngAmericans have the highest unemployment rate of any group. Over the last 30years, the average tuition at four-year state universities has almostquadrupled. After accounting for population growth and inflation, criticalfederal programs like Work Study, TRIO, GEAR UP, and Federal SupplementalEducation Opportunity Grants, have been cut by almost a third over the lastdecade. And the sequester cuts have cost around 500 Connecticut studentsSupplemental Educational Opportunity Grants, and 500 others have been cut fromwork-study programs.