Rep. Swalwell and Students Demand Congress Prevent Doubling of Student Loan Interest Rates

HAYWARD, CA – Today, U.S. Representative Eric Swalwell (CA-15) took on the job of a student financial aid officer as part of his monthly "In Your Shoes" program and held a roundtable with students on financial aid issues at California State University, East Bay to stress the need to stop student loan interest rates from doubling on July 1. Unless Congress acts the interest rates on need-based student loans will rise from 3.4 percent to 6.8 percent, which will increase costs for seven million students nationwide.

While he shadowed the University's Executive Director of Financial Aid, Swalwell went through the typical scenarios students experience when applying for financial aid. He then met with six CSU, East Bay students who shared their experiences applying for financial aid and their concerns about the rates doubling on July 1.

"Today student loan debt exceeds our country's total credit card debt. Making college more expensive is the last thing we should do," said Swalwell. "I understand the burden of student loans; I am still paying off mine. The students I spoke to at CSU, East Bay are already buried deep in student loan debt and we should not be adding to it. Preventing the rate hike is not a partisan issue, it's a student issue, and our priority in Congress must be making college more affordable and accessible."

"I'm hoping, as an aid director and student advocate, that Congress will keep student interest rates steady so our students aren't subject to an increase on July 1st," said Rhonda Johnson, Executive Director of Financial Aid at Cal State East Bay. "It's really refreshing to speak with a Congressman who has accrued student loan debt and has a perspective on what that means. Ideally, the rates would be lower.

"We're honored that Congressman Swalwell was available to meet with us," said Jerry Chang, President of Associated Students Inc. at CSU, East Bay. "A lot of students might not know the details about their financial aid and think an increase in rates is not a big deal, but it means money not spent in our community and on building our lives. It can make or break the value in the investment in higher education."

Tuition rates at four-year colleges and universities have risen over 32 percent in the last decade as a direct result of falling support for higher education by states, and today student loan debt exceeds one trillion dollars. To protect student borrowers, Swalwell co-sponsored H.R. 1433, a bill that freezes the current low 3.4 percent rate on subsidized Stafford loans for the next two years.

Hi-Res photos available upon request