WASHINGTON, D.C. – On May 23, the House of Representatives passed H.R. 1911, the Smarter Solutions for Students Act, a bill based on the President’s 2014 budget request that would provide a market-based variable interest rate for federal student loans.
Yesterday, the Senate voted down two separate loan proposals, one of which was similar to H.R. 1911. Absent congressional action, loan rates are scheduled to skyrocket from 3.4 percent to 6.8 percent on July 1.
U.S. Rep. Glenn ‘GT’ Thompson issued the following statement:
“The House passed a bipartisan proposal, which draws on the President’s request for a market-based solution to student loan rates. Rather than encouraging the Senate to join the House in a good-faith effort, the President chose politics over students and threatened a veto, for a solution that is based on his own proposal. Students and their families deserve certainty, what they do not deserve is to be used as political pawns by the President. The Senate’s failure to advance a responsible plan that serves the best interests of borrowers and taxpayers is absolutely unacceptable. We can prevent this rate hike and protect taxpayers, but we need the President to start leading and the Senate to stop politicking and pass a bill.”