With Student Debt Rising and Interest Rate Issue Unresolved, Congresswoman Hahn Urges Action on Her Legislation to Extend Loan Repayment Grace Period

May 23, 2012 Issues: Education

Washington, D.C. – Today, Congresswoman Janice Hahn sent a letter to Chairman John Kline and Ranking Member George Miller of the House Committee on Education and the Workforce urging them to take action on her legislation to extend the grace period for college graduates to begin paying back their federal student loans. Currently college students must begin paying back their loans six months after graduation. Rep. Hahn’s legislation would extend that to twelve months.

“Graduation season is upon us and, as our economy continues to recover, we need to give those young people just entering the work force a fighting chance to find a job and start earning before they begin repaying their loan obligations” writes Hahn. “Extending the grace period only becomes more necessary as the threat of a July 1 interest rate increase looms over our students.  That is why I am asking you to markup my legislation that would extend the deferment of payment for an additional six months.”

Rep. Hahn authored H.R. 4286, the “Student Loan Grace Period Extension Act” to extend the grace period on Federal Subsidized and Unsubsidized student loans from six months to twelve months.

The full text of the letter is below and can be found online here.


The Honorable John Kline
Chairman
House Education and Workforce Committee
Washington, D.C. 20515

The Honorable George Miller
Ranking Member
House Education and Workforce Committee
Washington, D.C. 20515

Dear Chairman Kline and Ranking Member Miller:

I write to you today concerning my student loan legislation, H.R. 4286, the “Student Loan Grace Period Extension Act.”  Graduation season is upon us and, as our economy continues to recover, we need to give those young people just entering the work force a fighting chance to find a job and start earning before they begin repaying their loan obligations. Extending the grace period only becomes more necessary as the threat of a July 1 interest rate increase looms over our students.  That is why I am asking you to markup my legislation that would extend the deferment of payment for an additional six months.

We all know the importance of education, and we should do everything we can to support our recent and future college graduates.  By extending the grace period for federal subsidized and unsubsidized student loans from six months to 12 months, the Student Loan Grace Period Extension Act will provide students with an expanded window after graduation where they can conduct their job search without the financial constraint of monthly student loan payments beginning six short months after graduation. 

For those students still in college and for those high school seniors who will begin their college careers in a few short months, the future should be bright. These students deserve stability as they make financial decisions today that will affect their economic health for the rest of their lives. 

Sincerely

Janice Hahn

Member of Congress

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