(Washington, DC) – U.S. Senator Richard Blumenthal today released the following statement opposing the Manchin-Burr student loan bill. The bill, on which the Senate is expected to vote next week, would increase borrowing costs for future students who depend on federally-subsidized loans.
“The proposed legislation likely exacerbates the long-term crisis of spiraling student loan debt. It provides variable low teaser rates now in exchange for unconscionably high rates down the road. I am dismayed that interest rates doubled on subsidized Stafford loans on July 1, and I remain committed to finding a solution to reduce this new debt burden, but I cannot support a proposal that lacks an adequate cap and mortgages the future of tomorrow’s students to secure a short-term fix today.
“This legislation fails future generations of young people, profits off the backs of students, and adds irresponsibly to the $1 trillion of already crushing student loan debt. Instead, we should return to the 3.4 percent rate on subsidized Stafford loans or reduce it to the same rate offered to some of the nation’s largest banks – efforts that I’ve long supported.”