Res 0799-2015

By Council Members Ulrich and Eugene Whereas, Outstanding student loan debt currently totals more than $1 trillion, surpassing total credit card debt, according to the Federal Reserve Bank of New York; and Whereas, As students struggle to pay for their college education, banks can receive federal government loans at a rate of 0.75%; and Whereas, The current interest rate for subsidized Stafford student loans is 3.4%, but will double on July 1, 2015 unless Congress intervenes; and Whereas, Congress is now confronted with the issue of whether to allow the new 6.8% interest rate take to effect July 1, 2015, or to enact legislation that would establish a different interest rate; and Whereas, The unemployment rate for recent college graduates in 2014 was 14.9%, according to the United States Department of Labor; and Whereas, Increasing the federal student loan interest rate will put more of a financial burden on students at a time when they are already squeezed by unemployment and confronted with significantly high debt; and Whereas; S.793, introduced by Senator Elizabeth Warren (D-Mass.) and H.R.1434, introduced by Rep. Joe Courtney (D-Ct.), known as The Bank on Students Emergency Loan Refinancing Act of 2015 (the Act), would set interest rates for federally-subsidized student loans at 0.75 percent for one year; and Whereas, The Federal Reserve would provide the funds for the lower rate on student loans, according to the Act; and Whereas, Under the Act, federal student loans would continue to be administered by the United States Department of Education; now, therefore, be it Resolved, That the Council of the City of New York calls on upon Congress to pass and the President to sign the Bank on Students Emergency Loan Refinancing Act of 2015. 6/4/15 LS 4814 KJR