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U.S. Congressman Paul Tonko and school officials joined concerned educators, parents and college students on campus today at the University at Albany to call on Congress to pass compromise legislation that will cut federal student loan rates. Previously low rates were scheduled to double if no action was taken before July 1, and new borrowers of federally subsidized Stafford loans will now pay 6.8% in interest. Tonko is a cosponsor of H.R. 1595, the Student Loan Relief Act of 2013, which would freeze federal student loan rates at 3.4% for two years while Congress works out a long-term solution. H.R. 1595 has 167 cosponsors, but has not received a vote in committee or on the House floor.

“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. It is unacceptable for our students to be saddled with constant uncertainty just because elected officials cannot get along. Congress must work out a long-term plan that will provide our future leaders with opportunity as they begin the next stage in their lives.”

"Last Fall, I was thrilled when the State University of New York unveiled a forward-thinking program called "Smart Track" to put SUNY on pace to lead the nation in reducing student debt and creating a more financially sound future for our students and future graduates.  Today, I commend Congressman Tonko for his leadership in supporting SUNY's efforts to address the critical issue of student debt and working to ensure that all students have the best opportunity possible to pursue a higher learning,”saidPatricia Thompson, Assistant Vice Chancellor, Student Financial Aid Services at the State University of New York.

"I applaud Congressman Tonko's leadership in addressing the critical issue of affordable education. Access to opportunity is a key to UAlbany's success and the success of our students," said University at Albany Associate Vice Provost for Enrollment Management Robert Andrea.

 On May 23, House Republicans passed a student loan bill (H.R. 1911) that would cause students to pay almost $2,000 more in interest than the currently doubled rates of 6.8%. The House passed the bill despite a White House veto threat and a statement from the Senate Majority that the chamber would not take up the legislation. According to the nonpartisan Congressional Budget Office, the legislation would cause rates to land at 7.7% -- almost a full percentage point higher than doubling the current rate.

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