Lawmakers Turn To Student Loan Concerns

Lawmakers in the House and Senate last week issued statements and proposed bills to address the debts of student borrowers as the CFPB released its report on student loan affordability.

As the CFPB prepared for its May 8 hearing in Miami, Fla., on student loan affordability, Sens. Elizabeth Warren, D-Mass., Jack Reed, D-R.I., and Rep. Kyrsten Sinema, D-Ariz., offered their respective bills aimed at helping make federally guaranteed loans more affordable. Warren’s bill, S. 897, would have all federally subsidized student loans for the 2013-14 academic year come through the Federal Reserve System, with rates equivalent to discount window rates for overnight loans to financial institutions.

Democratic Reps. George Miller and Maxine Waters, both of California, released a joint statement following the CFPB hearing lauding the bureau’s work on student loan debt. They said they would closely examine the report and stand ready to work with the CFPB and others on ways to help student borrowers. “In the meantime, the CFPB’s research demonstrates the urgent need for Congress to address the looming interest rate hike on need-based student loans,” they said.

Miller is the ranking member of the House Education and the Workforce Committee. Waters is ranking member of the House Financial Services Committee.

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