WASHINGTON, DC, May 21, 2013—Last week saw a flurry of legislative proposals created to address the subsidized Stafford loan interest rate increase scheduled to occur on July 1—a change that could impact 9.4 million people nationwide. These proposals join previously offered proposals from both President Obama and Senate Republicans. While some proposals would be more beneficial for certain students, it is unclear whether any one of these bills contains a politically or fiscally viable pathway forward.
We know it can be hard to keep all these proposals straight, and even harder to assess where the trends and points of congruence or alignment exist. To easily compare the provisions of these multiple proposals, NASFAA has created a chart that summarizes the basic tenets of each.
NASFAA has previously been on record praising the good-faith efforts and areas of agreement on both sides as they push to find a permanent and fiscally sustainable solution to student loan interest rate issue.
According to NASFAA President Justin Draeger: "We are heartened to see bipartisan support for finding a permanent, sustainable solution to federal student loan interest rates that would also stop the subsidized Stafford loan from doubling to 6.8 percent this July. In March, we testified to Congress that all federal student loan interest rates should be market-based, variable, sustainable and avoid the one-year expensive fixes that have created confusion for students and parents. We look forward to working with the Administration and Congress to find a viable path forward on interest rates before July 1.”
We hope this resource will be of use to you as you report this important consumer story. Please contact NASFAA with questions or to set up an interview: firstname.lastname@example.org; (202) 785-6944.
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: 5/21/2013