WASHINGTON, DC – Tonight, after the U.S. Senate defeated an amendment by U.S. Senator Jack Reed (D-RI) and Elizabeth Warren (D-MA) that would lock in reasonable caps of 6.8% for undergraduate and graduate loans, and 7.9% for PLUS loans and instead approved legislation restructuring the way the federal government prices subsidized federal loans, placing a heavier burden on working families, locking in an estimated $184 billion in student loan revenue for the federal government, and allowing rates to rise as high as 8.25% for undergraduates, 9.5% for graduate students, and 10.5% for parents, Senator Reed, issued the following statement:

“Today the U.S. Senate missed an opportunity to provide students and working families now and in the future with certainty by assuring that student loan interest rates will go no higher than they would under current law.

“Keeping rates affordable for a year or two is important, but we mustn’t shortchange future students who will now face higher rates.  As a young Rhode Islander recently wrote to me in a letter: “My brother, who is in college, will be paying a lot of money for college and he’s worried he will have a hard time paying the loan. I’m afraid that by the time I go to college, loans will be so expensive that I will not be able to pay it off. My parents help with paying for college but they might not be able to help with a loan that big. I really want to be able to go to college.”

“Today’s vote was a setback for students over the long haul, but we’ve got to keep fighting to try and make college more affordable for all those young men and women out there who work hard and aspire to fulfill their academic potential.  Not just for their sake, but for our nation’s future.

“We need a comprehensive overhaul to make our financial aid system more effective, affordable, and sustainable.  Congress must step up efforts to contain soaring college costs.  We also need to alleviate the burden of student debt on existing borrowers through refinancing and better consumer protections.

“I will continue working with my colleagues to address the bigger picture of college affordability in a meaningful and comprehensive way.”