WHEREAS, in 2007, Congress passed the College Cost Reduction and Access Act, a significant investment in higher education that eased the financial burden on millions of students and their families; and
WHEREAS, the College Cost Reduction and Access Act reduced the fixed interest rate on federal Stafford Loans for undergraduate students from 6.8 percent to 3.4 percent over a 4 year period; and
WHEREAS, more than 7.4 million students – about one third of all college students in the country – will see their interest rates double on July 1, unless Congress acts to extend the reduced interest rate; and
WHEREAS, for each year Congress allows the rate to double, the average college student with these loans will take on an additional $1,000 in debt; and
WHEREAS, this potential increase in college costs for students comes at a time when tuition has been rising at 8 percent per year and the median wages for young people are falling; and
WHEREAS, student college loan debt now stands at $867 billion, and now surpasses the total amount of credit card debt in the country by more than $160 billion; and
WHEREAS, studies have shown that only 37 percent of student loan borrowers have been able to repay their loans without delinquency or delay.
NOW, THEREFORE, BE IT RESOLVED, that The U.S. Conference of Mayors urges Congress to act before July 1 to prevent the doubling of the interest rate on federal Stafford Loans for undergraduate students.