Patty Murray: “I rise today to discuss my ongoing work to protect taxpayers and help students by finally ending a special interest…”

“I rise today to discuss my ongoing work to protect taxpayers and help students by finally ending a special interest subsidy. As my colleagues know, I have been working to close a loophole that allows some banks to issue new students loans at outrageously inflated rates. These subsides were supposed to have ended more than ten years ago, but they continue today, and taxpayers are footing the bill. Just last year, this wasteful subsidy cost taxpayers $1 billion. Imagine how many students we could have helped if that money went to Pell Grants instead of the special interests. I believe we should close this loophole--immediately and permanently--and use the savings to help more students afford a college education. It is outrageous that taxpayers are paying 30 times what they should for these student loans. Interest rates haven't been at 9.5 percent in years, but new loans--at that inflated rate--are being written every day because of this loophole. On September 15, in the Appropriations Committee, I offered an amendment to close the loophole. My amendment would have used those savings--about $370 million--to increase grants to college students. My amendment had the support of every Democrat on the Appropriations Committee, but unfortunately the chairman and every Republican opposed it.”