May 01, 2002
Every year, nearly 700,000 students consolidate their student loans in order to benefit from a fixed, lower interest rate. The proposed legislation would prevent students from consolidating their loans at a fixed rate. Under this plan, consolidated loans would have variable interest rates, which fluctuate with market rates.
"Once again, we see who wins and who loses from the Bush Administration's economic plan. This time it is our college students," said Lee. "The Bush Administration pushed a $2 trillion tax cut that primarily benefitted the wealthy. Now that the country is facing deficit spending, the same Administration is placing the cost of that tax cut on the backs of people who must borrow money to obtain an education and pursue their dreams. This is wrong."
"This proposal would especially hurt low-income students because they are more likely to graduate with significant loan debt and are more likely to earn less than their peers after graduation," said Lee. "We simply cannot burden our students with more debt, especially those who are already at an economic disadvantage."
In 2001, more than 5.6 million students borrowed money to attend college. Nearly two out of three full time students at four year institutions had federal students loans, and the average student loan debt has nearly doubled over the past eight years. Over one third of these students graduate with unmanageable levels of debt, with monthly payments exceeding 8% of their monthly income.
"There are more than 14 community colleges, colleges and universities in the Ninth Congressional district. This legislation will place undue burdens on thousands of students who are currently taking out loans because they cannot afford to pay for college on their own," said Lee. "We must make college more affordable. We must oppose any legislation that makes it harder for people to attend college and receive an education."
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Congresswoman Lee, Democrats Rally with College Students Against Bush Proposal to Eliminate Loan Consolidation Program
Washington DC - Congresswoman Barbara Lee joined House Democrats and college students at a rally today to oppose the Bush Administration's proposal to increase the amount of money that students will pay for federal loans in an effort to reduce the federal deficit.Every year, nearly 700,000 students consolidate their student loans in order to benefit from a fixed, lower interest rate. The proposed legislation would prevent students from consolidating their loans at a fixed rate. Under this plan, consolidated loans would have variable interest rates, which fluctuate with market rates.
"Once again, we see who wins and who loses from the Bush Administration's economic plan. This time it is our college students," said Lee. "The Bush Administration pushed a $2 trillion tax cut that primarily benefitted the wealthy. Now that the country is facing deficit spending, the same Administration is placing the cost of that tax cut on the backs of people who must borrow money to obtain an education and pursue their dreams. This is wrong."
"This proposal would especially hurt low-income students because they are more likely to graduate with significant loan debt and are more likely to earn less than their peers after graduation," said Lee. "We simply cannot burden our students with more debt, especially those who are already at an economic disadvantage."
In 2001, more than 5.6 million students borrowed money to attend college. Nearly two out of three full time students at four year institutions had federal students loans, and the average student loan debt has nearly doubled over the past eight years. Over one third of these students graduate with unmanageable levels of debt, with monthly payments exceeding 8% of their monthly income.
"There are more than 14 community colleges, colleges and universities in the Ninth Congressional district. This legislation will place undue burdens on thousands of students who are currently taking out loans because they cannot afford to pay for college on their own," said Lee. "We must make college more affordable. We must oppose any legislation that makes it harder for people to attend college and receive an education."
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