WASHINGTON, DC, May 9, 2013—In response to HR 1911, the “Smarter Solutions for Students Act” put forth by the House of Representative’s Committee on Education and the Workforce, National Association of Student Financial Aid Administrators (NASFAA) President Justin Draeger issued the following statement:
“We are pleased that the House has put forth a student loan interest rate proposal that represents a long-term, sustainable, market-based solution for all borrowers.
“The framework of the House proposal includes many aspects of a sensible student loan program, including market-based rates, a cap on future student loan interest rates, and the retention of consolidation options. The House proposal also contains many of the elements put forward by President Obama in his fiscal year 2014 budget proposal.
“However, we remain concerned about the House proposal’s potential for increasing interest rates over time and its failure to expand vital safety nets like ‘Pay As You Earn.’ In addition, we oppose using funds from students and parents for deficit reduction.
“Still, we are heartened to see points of concurrence and good-faith efforts by both Democrats and Republicans to find a permanent, fiscally sustainable solution to the interest rate problem. We urge lawmakers to continue to work together to find a path forward in providing low-cost loans to students and parents.”
The National Association of Student Financial Aid Administrators (NASFAA) is a nonprofit membership organization that represents nearly 20,000 financial aid professionals at more than 3,000 colleges, universities, and career schools across the country. Each year, our members help nearly 15 million students receive funding for postsecondary education. In all, NASFAA member institutions served 97% of all federal student aid recipients in the U.S. Based in Washington, D.C., NASFAA is the only national association with a primary focus on student aid legislation, regulatory analysis, and training for financial aid administrators. For more information, visit www.nasfaa.org.
Publication Date: 5/9/2013