Nearly one year ago, in the very first issue produced by the 2012–13 Vanguard staff, we ran a last-minute AP wire story about Congress reaching a one-year extension deal that prevented the 3.4 percent interest rate on subsidized Stafford loans from doubling on July 1, 2012.
And here we are, in our last issue before next year’s staff takes over, once again facing the daunting specter of a 6.8 percent interest rate, which would add another $1,000 of debt for each year of maxed-out loans. If lawmakers do not intervene by July 1, current and future college students can look forward to an even greater burden of crushing loan debt. Deja vu.
Senate Democrats are currently pushing a bill that would keep interest rates at 3.4 percent for the next two years. House Republicans, on the other hand, recently passed legislation that would tie student loan interest rates to 10-year Treasury notes (i.e. market forces) while cutting off federal subsidies—a bill that President Obama has already threatened to veto.
Meanwhile, Elizabeth Warren, D-Mass., has introduced a bill that would allow college students to borrow at the same interest rate that Wall Street banks currently enjoy from the Federal Reserve: a whopping 0.74 percent.
Three partisan “strategies.” Zero bipartisan agreement. One unsavory consequence of inaction.
Whether you support the Republicans’ characteristically market-based solution, the Democrats’ quick-and-easy political fix or Warren’s pipe dream, it’s unlikely that you support the doubling of interest rates on student loans—especially if you’re a college student and/or dislike the idea of indentured servitude.
Fortunately, you have the power to make your voice heard. If you care at all about this issue, perform your civic duty and flood the phonelines and inboxes of your congressional leaders. You helped to elect them (or you know someone who did), so give them a call and make them do something—anything—to prevent this worst-case scenario.
We hope that by the time your new Vanguard staff publishes its first issue at the end of this month, Congress will have transcended its political deadlock and done right by us. The 11th hour draws nigh.
(Also: Elizabeth Warren 2016.)
Sen. Ron Wyden, Democrat
Portland office: 503-326-7525
wyden.senate.gov/contact
Sen. Jeff Merkley, Democrat
Portland office: 503-326-3386
merkley.senate.gov/contact
Rep. Earl Blumenauer,
Democrat, 3rd District
Portland office: 503-231-2300