WASHINGTON – U.S. Senator Chris Coons (D-Del.) voted Wednesday to give students a fair shot at an affordable college education by lowering interest rates for millions of borrowers with outstanding loans. The Bank on Students Emergency Loan Refinancing Act would allow graduates with outstanding student loan debt to refinance their loans at the lower interest rates currently offered to new borrowers. The measure was blocked by a Republican filibuster.
“A college education is no longer a luxury – it is a prerequisite for most of today’s middle class careers,” Senator Coons said. “In an already challenging economy, too many students are carrying the additional burden of crushing student loan debt. The same system that has made a college degree attainable for millions of students is today holding them hostage under a mountain of debt.”
“The growing number of students falling behind on loan payments is a worrying signal that the rising cost of college is outpacing students’ ability to pay,” the Senator continued. “Delaware is sending more students to college than ever before, but they are returning with a nation-high average of $33,000 in student loan debt. The many years of loan repayments ahead will hinder their ability to make long-term investments and everyday purchases that put money back into our economy. While our students struggle, Republicans in Congress have repeatedly blocked efforts to ease their burden. The bill before the Senate today was yet another example that would have made a real difference for nearly 70,000 Delawareans. It’s time for Congress to get past the gridlock and work together to make college more affordable for America's students."
Student loan debt — now at a staggering $1.2 trillion — is the second highest form of consumer debt, and it is creating a drag on the U.S. economy. Long-term debt is preventing many Americans from buying a home, saving for retirement, starting a business, or even starting a family.