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Congress Fails Student Loan Borrowers Once Again : Student Debt Crisis

Congress Fails Student Loan Borrowers Once Again

| July 11, 2013 | 3 Comments

Have you heard the news?  After Congress failed to keep interest rates on federally subsidized Stafford Loans from doubling on July 1st, just yesterday, the U.S. Senate failed to take up a bill that would have reset interest rates at 3.4% for another year, falling short of the 60 votes needed to begin debate.

Simply put, Congress has, once again, failed the American people.  But this isn’t the end of the fight – this is just the beginning.

For the past few months, we’ve written to you about the importance of fighting against the looming rate hike on federally subsidized Stafford Loans, however; we’ve also argued that this particular fight is but one small battle in the overall “war” against the ever-worsening student debt crisis.

Throughout this debate, many of you have asked “What about me?” as the vast majority of you wouldn’t be affected by this rate hike anyway.  Well, we’ve heard your voices and we think you’re absolutely right!  The recent debate over interest rates has sucked most of the air out of what should be a much larger debate over how we fund higher education in America.

Because Congress has remained tone-deaf to the will of the American people, we need to raise our voices even louder!  To that end, we’ve started a new petition, demanding that Congress take up Comprehensive Student Debt reform.  Rather than focusing on just one small piece of the overall student debt crisis, we’re asking that Congress take a holistic approach to the issue and completely overhaul the student lending system.  Among the reforms we’re asking for in this new petition are:

  • Restoration of basic consumer protections, such as bankruptcy rights and statutes of limitations on the collections of student loan debt;
  • The right to refinance student loans so as to allow borrowers to take advantage of historically low interest rates;
  • Elimination of the $2,500 cap on the deductibility of student loan interest paid;
  • Elimination of the practice of interest capitalization on student loan debt;
  • The ability to consolidate private student loans with federal loans; and
  • Making all federal and private student loans eligible for income-driven repayment programs, such as IBR and Pay As You Earn, that limits payments to ten percent of income and provides forgiveness after a certain number of years;

This list is by no means exhaustive.  There are countless ways we can reform the way in which higher education is paid for in America, but Congress needs to find the political will to get to work.  Please add your name to this petition today so that we can demonstrate to those who purport to represent us that we’re not only deadly serious, but that we’re not going to give up this fight!

To further help spread the word, please click here to automatically share the above image with your friends on Facebook.  Then, click here to Tweet about the new petition.

Thank you, as always, for your continued support.  Now, let’s raise our voices even louder than they’ve been before and let Congress know: they have a job to do and we’re not going anywhere until they do it!

Category: BLOG

Comments (3)

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  1. debtslave says:

    All student loan debtors should just stop paying their debt and people going to college should not take out anymore loans to go to college.

    They will listen to us once they stop getting our money. But it must be a united front.

  2. Neither party’s budget proposal in Congress has money specifically set aside to keep student loans at their current rate. The House Republicans’ budget would double the interest rates on newly issued subsidized loansto help balance the federal budget in a decade. Senate Democrats say they want to keep the interest rates at their current levels, but the budget they passed last week does not set aside money to keep the rates low.

  3. Daddyo!@65 says:

    Please get and read Debt: the first 5000 years. It adds an important component to the understanding of debt and how it is used to supress people written from the vantage point of an anthropologist, as opposed to economists (who clearly don’t understand debt or the economy would never crash.)