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File #: Res 1840-2013    Version: * Name: Federal Student Loan Refinancing Act (S.1066)
Type: Resolution Status: Adopted
Committee: Committee on Higher Education
On agenda: 6/24/2013
Enactment date: Law number:
Title: Resolution calling upon Congress to pass and the President to sign S.1066, the Federal Student Loan Refinancing Act by Senator Gillibrand, which would help reduce student debt.
Sponsors: Ydanis A. Rodriguez, Inez E. Dickens, Maria Del Carmen Arroyo, Gale A. Brewer, Margaret S. Chin, Leroy G. Comrie, Jr., Mathieu Eugene, James F. Gennaro, Vincent J. Gentile, Robert Jackson, G. Oliver Koppell, Brad S. Lander, Jessica S. Lappin, Melissa Mark-Viverito, Rosie Mendez, Annabel Palma, Diana Reyna, Donovan J. Richards, Deborah L. Rose, Albert Vann
Council Member Sponsors: 20
Attachments: 1. Committee Report, 2. Hearing Testimony, 3. Hearing Transcript, 4. Hearing Transcript - Stated Meeting 6-24-13
Date Ver.Prime SponsorAction ByActionResultAction DetailsMeeting DetailsMultimedia
6/24/2013*Ydanis A. Rodriguez City Council Approved, by Council  Action details Meeting details Not available
6/24/2013*Ydanis A. Rodriguez City Council Introduced by Council  Action details Meeting details Not available
6/24/2013*Ydanis A. Rodriguez City Council Referred to Comm by Council  Action details Meeting details Not available
6/24/2013*Ydanis A. Rodriguez Committee on Higher Education Hearing on P-C Item by Comm  Action details Meeting details Not available
6/24/2013*Ydanis A. Rodriguez Committee on Higher Education P-C Item Approved by CommPass Action details Meeting details Not available
Preconsidered Res. No. 1840
 
 
Resolution calling upon Congress to pass and the President to sign S.1066, the Federal Student Loan Refinancing Act by Senator Gillibrand, which would help reduce student debt.
 
 
By Council Members Rodriguez, Dickens, Arroyo, Brewer, Chin, Comrie, Eugene, Gennaro, Gentile, Jackson, Koppell, Lander, Lappin, Mark-Viverito, Mendez, Palma, Reyna, Richards, Rose and Vann
 
Whereas, The United States Department of Education ("U.S. DOE") indicated that millions of students will continue to pursue secondary education with the assistance of student loans; and
Whereas, However, many borrowers are struggling or unable to meet their financial obligations, some before they even complete their degrees; and
Whereas, The amount of outstanding student debt nationwide surpasses $1 trillion dollars, with $864 billion attributed to federal government loans and $150 billion to private loans, according to the Consumer Protection Financial Bureau; and
Whereas, In the first quarter of 2012, the outstanding student debt for New York State residents totaled $66.8 billion, according to the latest data by the Federal Reserve Bank of New York; and
Whereas, As of 2010, the average student loan debt for public and private college graduates in New York was the tenth highest in the nation, according to the Project on Student Debt, which is administered by the Institute for College Access and Success; and
Whereas, The U.S. DOE cites that nearly 11 percent of New York State graduates, or 24,800 borrowers, have defaulted on their student loans between 2009 and 2012; and
Whereas, Interest rates on Federal Stafford Loans are scheduled to double from the current rate of 3.4 percent to 6.8 percent on July 1, 2013 due to the expiration of the one-year extension of the 3.4 percent rate contained in the Moving Ahead for Progress in the 21st Century Act; and
Whereas, Like other students across the country, there are approximately 422,000 individuals in New York State who will be impacted by the rate increase, according to New York State Comptroller Thomas DiNapoli; and
Whereas, Moreover, the average New York student would have to pay an estimated $993 more in Stafford Loans if Congress does not act to prevent this devastating hike before July 1, 2013; and
Whereas, Students in New York City are significantly impacted by student loan debt; and
Whereas, In New York City, the average debt of graduates with federal loans from the 2010-2011 school year was more than $20,000, according to Senator Kirsten Gillibrand; and
Whereas, Senator Gillibrand stated that "more [C]ity graduates and middle class families are burdened by student loans than ever before and are struggling to repay a higher amount of debt than ever before"; and
Whereas, Senator Gillibrand also stated that "our young people should be able to refinance in that same way that our businesses and homeowners do"; and
Whereas, To address the burden faced by graduates struggling to repay their federal student loans, Senator Gillibrand introduced S.1066, also known as the "Federal Student Loan Refinancing Act," on May 23, 2013; and
Whereas, The Federal Student Loan Refinancing Act would enable individuals who have an interest rate above 4 percent to refinance for a lower, fixed interest rate of 4 percent; and
Whereas, During a time of high unemployment, tuition hikes, and exorbitant textbook costs, New Yorkers are forced to turn to loans to pay for a college education; and
Whereas, Doubling the interest rate of federal Stafford loans will add an additional burden to students which puts them at greater risk of falling behind in their payments or going into default on their loans; and
Whereas, Senator Gillibrand's legislation would bring much needed relief to many New Yorkers and students nationwide; now, therefore, be it
Resolved, That the Council of the City of New York supports the Federal Student Loan Refinancing Act by Senator Gillibrand to help reduce student debt.
 
LS# 4800
6/4/13
12:45 p.m.
TC