SCR 4 (LSB 1298XS (2) 87)

SENATE CONCURRENT RESOLUTION NO. 4

BY  ZAUN

A Concurrent Resolution urging Congress to enact legislation to limit the interest rates collected or imposed by the United States Department of Education for certain federal student college loans.

   WHEREAS, the Institute for College Access & Success’ Project on Student Debt finds that the average statewide debt load for Iowa’s public and private college and university graduates, at $29,547 for Iowa’s class of 2015, ranks the state as having the 8th highest level of graduate debt in the nation; and
   WHEREAS, the proportion of Iowa’s class of 2015 graduating with debt, 66 percent, is the 15th highest in the nation according to the institute; and
   WHEREAS, The Wall Street Journal, in an article published on April 7, 2016, reports that more than 40 percent of Americans who borrow from the main federal student loan program are not paying or are delinquent in paying the more than $200 billion owed; and
   WHEREAS, by reducing interest rates and keeping loan payments manageable, college and career and technical education program graduates can better afford payments, pay off student debt sooner, and begin paying taxes and achieving the essential milestones of the American dream —— including purchasing homes and vehicles, starting families, and investing for retirement; NOW THEREFORE,

   BE IT RESOLVED BY THE SENATE, THE HOUSE OF REPRESENTATIVES CONCURRING, That the Iowa General Assembly urges Congress to enact legislation limiting the interest rates collected or imposed by the United States Department of Education for loans made, insured, or guaranteed under the William D. Ford Federal Direct Loan Program or the Federal Perkins Loan Program at not more than two percentage points over the federal prime rate for the life of the loans of students attending public and private accredited postsecondary institutions; and

   BE IT FURTHER RESOLVED, That a copy of this Concurrent Resolution be distributed to the President of the United States Senate, the Speaker of the United States House of Representatives, and each member of Iowa’s congressional delegation.