Congressman Paul Tonko (D-NY) has joined an effort to force a vote on key legislation that would stop the scheduled doubling of the interest rates on subsidized Stafford student loans by July 1. Tonko has signed a discharge petition to force Republican House leadership to bring to the floor H.R. 1595, the Student Loan Relief Act of 2013, of which he is a cosponsor. H.R. 1595 would save borrowers of subsidized Stafford loans an average of $1,000.

“During tough economic times, we must foster an environment for college graduates that give them the best possible chance at success,”said Tonko. “Student loan debt keeps borrowers from contributing to the economy, prevents small business growth, and serves as a barrier for young entrepreneurs. We have an opportunity with this legislation to freeze student loan rates at historic lows for two years while Congress works out a long-term plan that will provide our future leaders with opportunity as they begin the next stage in their lives.”

A discharge petition requires the House to consider legislation once a majority of Members of Congress (218) have signed it. The Student Loan Relief Act currently has 160 cosponsors and has yet to receive a hearing in its committee of jurisdiction or any progress that would bring it up for a vote on the House floor. It was introduced on April 17 by Congressman Joe Courtney (D-CT).

Student loan debt has almost quadrupled in the last decade to more than $1 trillion, more than car owner or credit card debt. 66% of college students have federal loans at graduation, averaging $26,600 in debt.

“With more and more jobs requiring a college degree, the opportunity for higher education should remain available for as many potential students as possible, and should not turn into a perk for a privileged few,” added Tonko. “High student loan rates only serve to hamstring motivation to become better educated, work toward a better-paying job, and contribute to the innovation our country is known for.”

On May 23, House Republicans passed a student loan bill that would cause students to pay almost $2,000 more in interest costs than if Congress did nothing and allowed rates to double. The House Republican bill, H.R. 1911, would set federal student interest rates higher than current fixed rates for millions of borrowers, as it ties student loan rates to a variable 10-year Treasury note, marked up by 2.5 percent to 4.5 percent. According to the nonpartisan Congressional Budget Office, this legislation would cause rates to land at 7.7% -- almost a full percentage point higher than doubling the current rate.

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