Later today, the House will vote on legislation to ensure millions of student loan borrowers won’t see their rates double in July. Not only that, the bill will put in place a long-term solution that gets Washington out of the business of setting interest rates. The Smarter Solutions for Students Act (H.R. 1911) is a win-win for both students and taxpayers and it’s part of Republicans’ Plan for Economic Growth and Jobs.
To preview today’s vote, the bill’s authors, Education & the Workforce Committee Chairman Rep. John Kline (R-MN) and Rep. Virginia Foxx (R-NC) have an op-ed in The Washington Times. Here are a few key excerpts:
- A plan that provides fairness for students: “By tying rates to the market, the Smarter Solutions for Students Act sets a predictable formula for interest-rate calculations, insulated from the politics and posturing of Washington. Additionally, we protect students from high interest-rate environments by imposing a fair and reasonable cap.”
- A plan that puts an end to quick fixes: “It will put an end to the quick fixes and campaign promises that have failed to strengthen our nation's student-loan system. Our proposal offers predictability, simplicity and the flexibility to take advantage of low interest rates whenever possible. In fact, should this legislation be enacted this summer, most student-loan borrowers will see their interest rates drop as much as 2 percentage points. It's a win for students, and a win for taxpayers.”
- A plan based on bipartisan agreement: “Students deserve a long-term solution that gets Washington out of the business of setting student-loan interest rates. Fortunately, President Obama agrees. In his budget for the next fiscal year, the president offered a plan to tie rates to the free market.”
That’s why, Chairman Kline and Rep. Foxx write, “we hope the administration and our colleagues in the House and Senate will stand by the president's proposal and help us move the Smarter Solutions for Students Act swiftly through Congress and onto his desk.”
The Smarter Solutions for Students Act is all about making life work for families and expanding educational opportunities – key parts of Republicans’ Plan for Economic Growth and Jobs. Visit gop.gov/jobs to learn more.