Georgetown University Student Association Established in 1989
Nate and Adam initiated a campaign with their staff and cabinet to empower student voices on this issue of critical importance to them. First, they reached out to student governments across the nation, asking them to sign their names to a letter urging Congress to pass a deficit-neutral bill that would freeze rates until 2015. Then, they circulated a Georgetown-wide petition — supported by both the College Republicans and College Democrats — that compelled Congress to find a bipartisan solution to keep student loan interest rates at 3.4 percent. Additionally, they followed up with each Hoya signee, providing them with the contact information for their relevant representatives in Congress.
The student government petition took off, and was delivered before the deadline to decision makers on the Hill. Unfortunately Congress did not act in time, and the rates did double - however, after shooting down a number of proposals, the House of Representatives passed a final Senate plan on Wednesday, July 31st. While not a perfect bill, it is a compromise that reduces rates and avoids overly volatile fluctuations.
Status: The final bill currently awaits President Obama’s signature!
Over 120 student body presidents signed the letter urging Congress to act. The letter was successfully sent to every House and Senate office. Minority Leader Pelosi hosted a conference to highlight the letter. Click the link below to read the letter!
Letter from Student Government Coalition
On behalf of our (# of signees) student body presidents, representing (# of total students) across the country, we urge you to prevent interests on subsidized Stafford loans from doubling on July 1 from 3.4% to 6.8%. This is an opportunity to take meaning steps to address the growing student debt crisis, and we ask you to take meaningful action on this issue.
Student debt is skyrocketing, now exceeding $1 trillion with the average student holding $27,250 in loans by graduation day. These figures have grown 58 percent in just seven years. This enormous level of student debt weighs heavily on students, our families, and our economy, forcing young Americans to delay major life decisions like buying a home or starting a family.
Low interest loans are an economic necessity, allowing lower income families to reach the middle class and maximizing the consumer power of students who have to borrow to finance school. With bipartisan support for affordable interest rates and several proposals on the table, we urge you to keep a few principles in mind:
I. Low interest rates make a difference. When interest rates were scheduled to double in 2012, the intensity of student responses demonstrated what $1000 means for college students and recent graduates. Any market-based program should include meaningful protections against unpredictable, high interest rate environments, like a cap on how student loan high interest rates can go.
II. Repayment options must be simple and predictable. Comprehensive student loan reform should include improved repayment options, such as automatic income based repayment programs or student loan refinancing options. These programs help minimize the impact that high student debt burden has on graduates’ major life decisions.
III. Reinvest any cost savings back into financial aid. Student loan reform cannot come at the expense of other vital education programs, and any cost savings should be reinvested in the education budget. While we are concerned about the national debt, any savings in the program should be reinvested in our generation to increase college access, support student success, and keep student debt down. It should be a goal to make any long term plan cost-neutral or add investment to programs like Pell.
Expanding access to postsecondary education improves the success of our country as a whole. Investing in the American people is the key to a dynamic 21st economy that can support long-term growth. If a college education falls out of reach for millions of Americans, our entire economy will suffer the consequences. Young people with student loans are less able to purchase homes and participate as consumers in our economy. Raising the interest rates on student loans exacerbates the problem by unnecessarily pushing students further into debt and limiting future economic growth.
Our classmates and their families represent a broad range of ideologies and backgrounds. However, the vast majority of students on our campuses are rallying again, like we did last year, around belief that everyone should have access to an affordable, world-class education.
We urge you to take action by July 1st and believe now is an opportunity to implement a comprehensive, student-centered approach to student loan reform to more aggressively tackle the student debt crisis. If long-term plans prove politically impossible, we support a short-term extension of the current rates at 3.4% until a time when such comprehensive reform proves politically viable.
Sincerely,
[Names of Student Government Leaders]
