|
|
|
|
|
Home
|
|
|
|
Jan 17, 2007- Congresswoman Kaptur Votes for Lower Interest Rates on College Loans |
| Print |
|
|
Representative Marcy Kaptur joined colleagues in the U.S. House in passing
legislation that would cut in half the interest rates on college loans over a
five-year period.
"This legislation will make higher education more affordable for
students-and parents-from working class families throughout our country," said
Congresswoman Kaptur, who voted for the legislation (H.R. 5) that passed the
House on a vote of 356-71.
"Passage of the College Student Relief act will put higher education within
reach for more students, both traditional and non-traditional students, and
make it more affordable for more than five million Americans," Congresswoman
Kaptur said.
The legislation, which now goes to the Senate, will cut the subsidized
federal Stafford loan interest rate from its
current 6.8 percent to a new level of 3.4 percent in 2011. The first cut would
bring rates down to 6.12 percent on July 1, 2007, followed by annual decreases.
Subsidized loans are those loans that do not accrue interest while the student
is enrolled in college.
Congresswoman Kaptur noted that approximately two thirds of all students at
four-year colleges will incur debt to finance their educations. For 173,000 Ohio students, the
average debt load for education will approach $13,500. The College Student
Relief Act would reduce that debt by an average of more than $2,200 for an Ohio student who starts
college this year and by more than $4,300 for a student who starts college in 2011.
The legislation that passed today will affect the interest rates on loans
under the Federal Family Education Loan (FFEL) program and the Direct Loan
program administered by the U.S. Department of Education.
|
|
|
|
