Louise Slaughter: “S. 1762 is a noncontroversial measure designed to ensure the continued availability of student loans for students and…”

“S. 1762 is a noncontroversial measure designed to ensure the continued availability of student loans for students and their families. The bill before us today passed the Senate by unanimous consent in December and enjoys strong support in the Chamber from both sides of the aisle. Student loans are critical for a majority of American families working to ensure a quality education for their children. With the cost of a college education skyrocketing, the need for student loans applies to all segments of society. Congress has a duty to ensure that as this country weathers a recession, a quality education does not take a hit in the process. The legislation addresses a long-standing problem in the Federal student loan program as to how student loan interest rates are to be calculated. The problem first came to light several years ago when it was clear that a provision within the Higher Education Act would dramatically alter how interest rates would be determined. The interest rate formula set to take effect back in 1998 would have forced many of the lenders now participating in the Federal Family Education Loan Program to reduce or eliminate their participation. At the time, Congress worked diligently to craft a solution to a problem that virtually everyone agreed would be an unintended result of previous legislation. The compromise resulted in the lowest interest rates in the Stafford loan program's history.”