WASHINGTON, DC – Today, Rep. Bill Delahunt voted for legislation that makes college more affordable by cutting the interest rate on subsidized student loans for undergraduates in half over the next five years.

The House passed the bill this afternoon by a vote of 356 to 71.

“In Massachusetts, there are almost 100,000 four-year college students with subsidized student loans – all of whom will benefit from this bill,” Rep. Delahunt stated. “Making the cost of a college education more affordable is critical at a time when the costs continue to skyrocket,” Delahunt pointed out.

Studies have shown that, over the past five years, tuition and fees at four-year public colleges and universities have risen 41 percent, putting college out-of-reach for more and more students.  Interest rates on student loans have also risen – increasing the cost of college even more.  It is estimated that, if Congress does nothing, financial barriers will prevent over four million high school graduates from attending a four-year public college over the next decade, and prevent another two million high school graduates from attending any college at all.

“Cutting interest rates on student loans will certainly make college more affordable. But we must do more,” stated Delahunt. 

Later this year, Congress is expected to take up legislation to increase the maximum Pell Grant scholarship and other measures to reduce the financial barriers to a college education.

The bill passed by the House today cuts the interest rate in half in five steps:  from 6.8% to 6.12% in 2007; 5.44% in 2008; 4.76% in 2009; 4.08% in 2010; and 3.4% in 2011 and will save the typical Massachusetts borrower over $4,470.  It is fully paid for by making modest reductions in certain lender and guaranty agency subsidies in order to make the student loan program more efficient and effective for students and for American taxpayers.

This legislation is supported by dozens of organizations, including the American Council on Education, National Association of Independent Colleges and Universities, American Association for State Colleges and Universities, American Association of Community Colleges, Alliance for Equity in Higher Education, Hispanic Association of Colleges and Universities, College Board, College Parents of America, and the Institute for Higher Education Policy.

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