Bill would give active-duty soldiers debt relief for student loans

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Verbatim: Bill would give active-duty soldiers debt relief for student loans
Statement issued Tuesday by Sen. Evan Bayh’s office:

Washington – A bipartisan coalition of 14 U.S. Senators today introduced legislation to provide immediate student loan debt relief to active-duty service soldiers and members of the National Guard.

Currently, soldiers who are serving in Iraq, Afghanistan and other countries abroad are charged interest on their federal student loans while they are defending the country overseas. The bill filed today would prohibit interest from accruing on direct student loans for all service members on active duty for up to 60 months. This would save the average service member between $1,183 and $1,479 over the course of a 12- to 15-month activation period.

Last year, Congress passed legislation authored by Senator Evan Bayh (D-IN) that prevented interest from accruing on loans originated after October 2008. The bill provided important relief to service members who intended to take out loans in the future, but it did not address those who currently had loan debt. This legislation corrects that problem and provides interest relief to all active duty service members with eligible loans.

Original cosponsors of the bill are Senators Bayh, Michael Bennet (D-CO), Jeff Sessions (R-AL), Joe Lieberman (ID-CT), James Inhofe (R-OK), Sheldon Whitehouse (D-RI), Ben Nelson (D-NE), Max Baucus (D-MT), Chuck Schumer (D-NY), Arlen Specter (D-PA), Amy Klobuchar (D-MN), Mark Udall (D-CO), Jeff Bingaman (D-NM) and Chris Dodd (D-CT).

"When Americans go off to serve their country during time of war, the government should not collect interest on their student loans," Bayh said. "Our soldiers and their families are already putting so many aspects of their lives on hold during their deployment. This is one more way we can honor their sacrifice and ease their transition from active duty service. It is relief we can and should provide for our soldiers right now."

"When our service men and women are sent to war, they shouldn’t shoulder the added burden of worrying about school loans or how much more they are going to have to pay when they come home," Bennet said. "Preventing interest from accruing on federal student loans for our soldiers fighting overseas is a smart, common-sense policy that will make life a little easier for the men and women who put their personal lives on hold to protect our country. I will work hard to move this legislation as the HELP committee takes up student lending reform."

"America’s servicemen and women already make extraordinary sacrifices to protect our freedom, they should not have to bear a heavier financial burden because of their service," Lieberman said. "This legislation is a small but important measure of gratitude for students who serve our country."

"Relief from federal student loan interest during deployment is a practical and important way to honor the men and women who serve our country," Specter said. "I am pleased to join Senator Bayh on this bill to help service members and their families transition from active duty by lessening this undue financial burden, especially during this tough economic climate."

"The federal government shouldn’t be asking for interest payments while service members are deployed and fighting for our country," Nelson said. "This is a common sense bipartisan measure that keeps unnecessary bills from piling up while our nation’s heroes are away from home and fighting for us."

"Our service members put their lives on hold when they leave to fight for our safety - putting their student loan interest on hold would offer them a measure of relief in return," Mark Udall said. "It’s the right thing to do as a thanks for their sacrifice, and I hope my colleagues will join this effort so we can pass this bill as soon as possible."