Hartzler and House vote to protect taxpayers by allowing the free market to set student loan rates

May 23, 2013 Issues: Education

Congresswoman Vicky Hartzler (MO-4) and the House have approved the Smarter Solutions for Students Act to allow the free market, not Washington politicians, to set student loan rates. Under the legislation, student loan interest rates would reset once a year and move with the free market.

“This legislation will protect taxpayers and make higher education more affordable for students, allowing the market to set the rates rather than have students forced to revert to a pre-set government rate of 6.8 percent,” said Hartzler. “It changes the structure of all federal student loans to reflect prevailing market interest rates.”

“Under current law, most borrowers are stuck with a high fixed interest rate set by Congress that does not reflect today’s lower interest rates,” continued Hartzler. “This bill ensures all borrowers can take advantage of lower interest rates when they are available and protects borrowers against higher interest rates with a reasonable cap.”

“The student loan rate issue should not be a political football that is subject to election-year campaigning and other shenanigans,” added Hartzler. “This bill ends loan rate uncertainty and strengthens student loan programs to serve the best interests of both borrowers and taxpayers.”

Congresswoman Hartzler serves on the House Budget, Agriculture, and Armed Services Committees.