Lowey Speaks Out on Student Loans at Purchase (VIDEO)

Congresswoman Nita Lowey (D-Harrison) was at SUNY Purchase Wednesday afternoon, pushing for congress to extend the College Cost Reduction and Access Act, which is set to expire this summer.

The expiration of the bill would return interest rates on student loans to 6.8 percent for the 2012-13 school year, back to 2006 levels. The bill had phased down the interest rates on student loans to 3.4 percent starting in 2008.

Lowey spoke out against lawmakers Wednesday who she said are poised to allow a rate increase that will affect 7.4 million students, pricing some of them out of a college education. She was joined by several SUNY Purchase students and Purchase President Thomas Schwarz.

"Making higher education more affordable for young people is one of the smartest investments we can make,” Lowey said. “It is outrageous that Congress is dragging its feet rather than acting immediately to protect a rate hike that will affect 7.4 million students on July 1. Students and families cannot afford the price increase that would result from higher interest rates on student loans.”

Schwarz also spoke in support of extending the bill, saying congress is allowing students to be caught in the middle of a political debate.

"As far as I can see this is more an Obama healthcare issue than it is to student loans," Schwarz said.

Schwarz added that although the interest rate has no bearing on the actual cost of education, he fears that the increasing cost of taking out a college loan will eventually reduce the accessibility of college education. About 53 percent of student at SUNY Purchase borrow money to fund their college education, according to a press release from Lowey's office.

Lowey said along with the extension of the bill, she supports using grants rather than college loans to help fund higher education.

"You can't encourage kids to go on and go to graduate school and on the other hand make it so expensive that they just can't do it," she said.

Congress passed a federal budget in March that does not extend the College Cost Reduction and Access Act. An amendment to avoid the increased interest rate was later defeated.

Lowey said Wednesday she thinks now is not the time to place an additional burden on students.

"At a time when Americans need greater levels of education and training—especially in fields like math and science—to compete in the global workforce, we should be making it easier—not more expensive—for students to afford college," she said.