Senator Charles Schumer has called on Congress to freeze the interest rates on student loans. Current Stafford loans have a rate of 3.4%, but they are destined to increase to 6.8% as of July 1. That increased will affect over 7.4 million students in the country. Schumer has joined the effort that is led by President Barack Obama to maintain the rates where they currently are. On Sunday, Schumer said he would be a co-sponsor on a bill with Rhode Island Senator Jack Reed that would freeze all interest rates at the current rate of 3.4% for Stafford loans.
Schumer said at a press conference that the thought of the interest rate burdening so many students was like thinking of fingernails running down a chalkboard. Joining him at the Sunday press conference were 30 college students. Debate in Congress over the interest rate issue is how such a freeze would be paid for, as the rate increase would generate in excess of $6 billion.
Schumer has called for the closing of loopholes in taxes for the gas and oil industry and other corporations to help pay for the interest rate freeze in student loans. He said, “Would you rather help a college student get through school or Exxon-Mobile make millions of more dollars?”
The Senator also suggested that funding for the freeze could also come through the passage of the so-called “Buffet Rule,” which would tax the wealthy at a higher rate. He said passage of that rule would cover the interest rate freeze by five fold.
