Gray Panthers Challenges Congress on Student Loan Crisis

WASHINGTON - July 26, 2013 - PRLog -- The U.S. Senate recently passed the Bipartisan Student Loan Certainty Act that would shift federal student loan interest rates from a fixed to variable, market-based rates pegged to the 10-year Treasury note. This “bipartisan deal” would leave students vulnerable to rates as high as 8.25 % and 9.5 %. This legislation, supported by President Obama, is now set the move to the House where it is also expected to quickly pass. Gray Panthers, an intergenerational social justice advocacy organization, opposes this legislation because it stands to harm students in the long run. Instead, Gray Panthers challenges Congress to pass comprehensive reform to give all students access to affordable higher education, rather than simply adopting a band-aid reduction in short-term interest rates.(To read full position statement, please visit the following link: (http://www.graypanthers.org/images/pdfs/gray%20panthers%20position%20on%20student%20loan%20crisis.pdf)


Due to Congressional gridlock, which resulted in the doubling of new, federally-backed Stafford loan interest rates from 3.4% to 6.8 %, Gray Panthers called upon Congress to fix the problem and reinstate lower rates for students. While Gray Panthers still believes very strongly that the budget should not be balanced on the backs of students, they also reject the notion that by returning rates to 3.4%, Congress will be “fixing” the student loan problem. They believe the student loan crisis is a growing catastrophe the nation’s financial security. Instead of tinkering with student loan interest rates, Gray Panthers demands that higher education be more affordable for all.

Andrew Grossman, Gray Panthers National Board member, states, “We believe that higher education should be available to all who work hard to achieve their professional aspirations. Our country should not put huge financial hurdles in front of those who are trying to improve their financial situation through diligence and study.  At the same time, we need to address the over one trillion dollars in outstanding student loan debt that is holding back our young people, and our economy as a whole.”

For more information, please visit www.graypanthers.org or contact the National Office at (202)-737-6637 or info@graypanthers.org.

####

Gray Panthers is an intergenerational, multi-issue advocacy organization with members throughout the nation working for social and economic justice and peace for ALL people. It is our vision to create a society that puts the needs of people over profit, responsibility over power and democracy over institutions.