Moments ago, House Education and Workforce Committee Chairman John Kline (R-MN) urged his colleagues to support this responsible proposal:
We have an opportunity today to get politicians out of the business of setting student loan interest rates. We have an opportunity to provide students more stability in the long run by putting an end to quick fixes and campaign promises. And we have an opportunity to build upon common ground with the administration and advance a bipartisan solution that’s a win for both students and taxpayers.
Similar to a plan put forth in President Obama’s Fiscal Year 2014 budget request, H.R. 1911 would set federal student loan interest rates using a formula based on the 10-year Treasury note. Not only will the bill prevent student loan interest rates from doubling on July 1, 2013, the Smarter Solutions for Students Act will also provide certainty for millions of borrowers by tying interest rates to the free market rather than the political whims of Washington.