MADISON, Wis. — The following are the statements of One Wisconsin Now Executive Director Scot Ross regarding reports that Congress will not act before the July 1 deadline to prevent the interest rates on federal Stafford student loans from doubling from 3.4% to 6.8%. Prior to today’s report, on party line votes, Democrats attempted to advance legislation that would have closed several corporate tax loopholes to maintain current interest rates. Republicans offered a competing plan that would have allowed variable interest rates and was estimated to cost borrowers over $15 billion more over the next decade:
“Increasingly we are seeing American families with student loan debt squeezed in a vice between big banks and the federal government. And as of today, it looks like Congressional inaction means that vice will squeeze even harder on the next year’s students and their families.
Thirty-seven million Americans – hard working, responsible individuals trying to get ahead – are saddled with over one trillion in debt from loans they took out to pay for their technical college, job training or college education.”
Yet Wisconsin’s Congressional Republicans stood up for big banks who don’t want borrowers to be able to refinance their loans and for the ability of banks and the federal government to profit from tens of billions of dollars off of student loan interest.”