By Brandon Moseley
Alabama Political Reporter
Congresswoman Martha Roby (R) from Montgomery wrote in her newsletter that President Obama and Senate Democrats are playing politics with student loan interest rates and should support the student loan plan passed by the Republican controlled U.S. House of Representatives.
Representative Roby said, “In May, the House passed a conservative solution to keep student loan interest rates from doubling. The plan was a long-term, market-based solution that would take politics out of setting interest rates. This doesn’t have to be a partisan issue. In fact, House Republicans’ plan was actually not altogether different than one included in President Obama’s budget. But, seeing another opportunity to campaign against Republicans, the President has now changed his mind and said that our plan is not good enough. The goal being, of course, to try and blame Republicans when the deadline comes and student loan rates double nationwide. His plan won’t work. The people are smarter than President Obama gives them credit for.”
Rep. Roby is asking for constituents to share their stories with her if they are facing student loan interest rates that could double. Congresswoman Roby said, “Do you have student loans that are at risk of doubling if the President and the Senate don’t act? Send me a message on Facebook and tell me about it. I may share your story as discussions on this issue continue in Washington.”
Rep. Roby said, “Making it easier to pay for college and better prepare students for tomorrow’s economy is a key component to House Republicans’ plan for jobs. A recent study from the American Action forum recently showed that the average student could have saved up to $3,400 more through college had there been a market-based interest rate. It’s time for President Obama and Senate Democrats to join the House to act and prevent student loan rates from doubling.”
Unless the House passes a student loan acceptable to President Barack H. Obama or Senate Democrats pass the plan which is passed by the Senate subsidized Stafford loan rates will jump from 3.4% to 6.8% on July 1.
According to numbers provided by the White House, there are 116,749 borrowers in Alabama with 134,399 loans that will be affected by the change. The total amount of money in Stafford loans owed by Alabama residents is $462 million. The rate increase will cost the average Alabama borrower an additional $974 a year in interest.