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Kline to Administration: Stop Politicizing the Student Loan Interest Rate Issue

House Education and the Workforce Committee Chairman John Kline (R-MN) issued the following statement in response to President Obama’s student loan event at the White House:

It’s time for the president to stop politicizing the student loan issue. The president and House Republicans agree on the need for a long-term, market-based plan that will take politicians out of the business of arbitrarily setting student loan interest rates. That’s why the House took action and approved the Smarter Solutions for Students Act, legislation largely based on a proposal put forth by the president earlier this year.

Not only will this responsible bill prevent interest rates from doubling on July 1st, it will also reduce rates immediately for most borrowers – just like the president wanted. Instead of holding campaign-style events, the president should urge his Senate colleagues to put forward their own plan to solve the problem. Senate inaction is the only thing blocking the long-term solution the president wants and the American people deserve.

The Smarter Solutions for Students Act:

  • Prevents student loan interest rates from doubling on July 1st.
  • Allows students to take advantage of low interest rates whenever available.
  • Protects students against high interest rates by imposing a reasonable cap.
  • Ensures borrowers have the option to consolidate their loans and lock in a low fixed rate.
  • Maintains existing federal loan repayment programs and debt management initiatives, including the generous Income-Based Repayment Plan.
  • Serves both taxpayers and students by producing roughly the same savings over 10 years as the president’s proposal.

To learn more about the Smarter Solutions for Students Act, click here.

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