On behalf of the California State Student Association (CSSA) and the more than 426,000 students it represents, the Associated Students (ASI) at California State University, Long Beach (CSULB) passed a resolution on Wednesday supporting President Barack Obama’s efforts to prevent a doubling of the interest rate on federal student loans.
 
The resolution urges Congress to pass legislation before July 1to extend the current 3.4 percent interest rate on the Stafford loans, which are taken out by some eight million low- and middle-income undergraduate students each year.  Without the new legislation, the interest rate on the popular federal loans will jump to 6.8 percent.
 
“This resolution addresses a timely issue regarding federal student loans on a national level.  It was imperative that action be taken today in time for Friday’s vote so that our students have a voice,” said CSULB ASI President Lucy Nguyen, who also recognized as by the Long Beach Post as a 40 Under 40 winner.  “CSULB passed this resolution on behalf of CSSA in non-traditional process due to the timeliness of this issue.  CSSA only meets once a month and due to the California Higher Education Student Summit, there was no meeting this month. CSSA’s current 2011-12 policy puts this issue to the forefront, that CSU students will ‘advocate for the protection of and improvements to federal financial aid programs.”
 
In passing the resolution, ASI leaders noted that student loan indebtedness in the United States has grown to more than $1 trillion, far exceeding individual credit card debt and any other debt with the exception of home mortgages.
 
The group also pointed out the significant cuts to higher education budgets by state legislatures, not only in California but throughout the country, the result of which has been rapidly increasing student tuition and fees and an increase in student loan indebtedness.
 
The CSSA is the largest student organization of its kind, representing 23 CSU campuses and some 426,500 students, including more than 80,000 who participate in the Stafford loan program.
 
“The federal government has already reduced Pell grant funding, and now you have a subsidized student loan issue,” noted CSSA Executive Director Miles Nevin.  “As states are divesting and tuition rises as a result, students are really in need of the aid that is out there.  The federal government is the only stop gap that students have right now.  So, we are hoping the federal government can support students when they need it most.”
 
And it is no small issue, Miles added.  While the percentage increase may not seem like much, he said the result will mean thousands of dollars in new interest for students over the lifetime of their loans.
 
The CSSA board is comprised of students from all 23 CSU campuses, and because of that, the group only gets together once a month, except for April when it holds its annual advocacy day in Sacramento.  So, CSSA wouldn’t be able to pass a resolution until May, but the issue is being discussed by decision-makers now.
 
“Getting into federal issues is something we just started doing three years ago, and federal aid has been our main focus since we started looking at national policies,” Miles explained.  “At the beginning of this year, we did pass a policy agenda, and the federal component of that policy agenda does specifically state that CSU students will ‘advocate for the protection of and improvements to federal financial aid programs.’  So, our position is consistent with the resolution that was passed today by the Associated Students at Cal State Long Beach.”
 
Nguyen said the resolution would be distributed to President Obama, Congressional representatives, U.S. Department of Education officials, CSU Chancellor Reed, CSULB President F. King Alexander, and press related outlets nationwide to encourage all students—especially the more than 70 percent of the current student population graduating with student loan debt—to support federal legislative action before July 1 to maintain the student loan interest rate at 3.4 percent.
 
“We hope that the legislature doesn’t only protect the interest rate, but that it continues to increase opportunities at the federal level for student aid,” Miles concluded.  “This makes sense for the government.  It’s not welfare for the students.  It’s what they need most right now, and frankly, our future depends on it.”