Organization Says Senate Budget Bill Would Cost Students and Families More in Interest Costs

WASHINGTON, July 20 /PRNewswire-USNewswire/ -- The Campaign to Reform Student Loans condemns today's Senate vote against the Nelson-Burr amendment and for passing a flawed budget reconciliation bill (S. 1762), which will harm families and student borrowers with the highest levels of student loan debt.

Senators clearly ignored the warnings of several of their colleagues about the unintended consequences that would result from this legislation. Even with a White House Statement of Administration Policy that highlighted the need to find the "best way too implement fair reductions" in the loan programs and to avoid unintended consequences that may lessen savings," the Senate forged ahead blindly threatening the viability of the Federal Family Education Loan (FFEL) Program which eighty percent of those whose who receive federal student loans depend on to finance their education.

The worse consequence of all is the extra money students will pay as a result of this legislation -- a graduate student will pay as much as $38,000 more in interest on a $60,000 loan debt.

The Campaign to Reform Student Loans pledged to push on to stand up for student borrowers and families as Congress works to resolve the differences between the House and Senate bills and in additional higher education changes this year.

The Campaign to Reform Student Loans is a collective voice of organizations, families and students, calling on lawmakers to take a common sense, bipartisan approach to reforming our student loan programs. We believe that Congress must enhance competition and choices for education financing, demand the strongest ethical standards and ensure college affordability for low-income and middle-class families. For more information please visit http://www.reformstudentloans.org/.