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INHOFE STATEMENT ON SENATE STUDENT LOAN BILL

June 11, 2014



June 11, 2014

Donelle Harder, Jacob Heisten, (202) 224-4721

INHOFE STATEMENT ON SENATE STUDENT LOAN BILL

WASHINGTON, D.C. -- U.S. Sen. Jim Inhofe released the following statement today after S. 2432, Bank on Students Emergency Loan Refinancing Act, failed on cloture by a vote of 56-38:

"Higher education is one of the key tools in lifting young people out of poverty and setting them on a path to success. However, the cost of education has grown at an unsustainable rate and the federal government encourages these cost increases, giving universities no incentive to cut back. S. 2432 does nothing to address the skyrocketing price of education for current and future students. Instead, this bill fails to distinguish between low-income individuals who are truly in need of relief and working adults who can afford to pay these loans back. The bill would also kill the private sector refinancing market, which is currently providing responsible and affordable debt payment relief for millions of Americans, by putting taxpayers on the hook for these private loans. What Americans want is legislation that will improve our economy, foster opportunities for higher learning, and create stable middle-class jobs, but instead, under this Administration, the income gap continues to widen and the cost of education has become unaffordable."

On July 24, 2013, Sen. Inhofe supported a bipartisan compromise plan that would set the interest rate on all new loans at the 10-year U.S. Treasury rate, fixing the rate for the life of the loan, with add-ons that would offset the costs associated with defaults, collections, deferments, forgiveness and delinquency. This compromise allowed for an estimated savings of $715 million over 10 years, according to the Congressional Budget Office (CBO).


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Source: Congressional Documents & Publications


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