Bill will cut student loan interest rates in half over five years January 17, 2007
Washington, DC- Later today Congresswoman Kirsten Gillibrand (NY-20) will vote for the bi-partisan College Student Relief Act [HR 5]. The bill, which Congresswoman Gillibrand co-sponsored, is expected to pass with broad support. The bill will cut student loan interest rates in half for the neediest students over the next five years. Additionally, the bill will not add to our national debt, as there are six offsets in the bill to meet PAYGO requirements. “This piece of legislation is a break for middle class families that opens the door of higher education, allowing more New Yorkers to achieve the American Dream,” Congresswoman Gillibrand stated. “In addition, expanding access to higher education will make America more competitive in the global economy.” About 5.5 million students, including 243,696 New Yorkers, will be affected by the College Student Relief Act. For the 2005-2006 school year, residents in the 20th Congressional District took out over $107 million in FFEL loans. During the 2003-2004 school year, the average family income of a subsidized Stafford loan borrower was $44,000, similar to the average family income in the 20th Congressional District. New Yorkers affected by this legislation have an average student debt of $14,276, and when the interest rate cuts are fully phased in, New Yorkers will save, on average, $4,570. Congresswoman Gillibrand added, “Lower student debt will make it easier for college graduates to more freely choose a career in public service.” Congresswoman Gillibrand realizes that tuition keeps increasing at a rapid rate and wants to make college more affordable. In the decade from 1995-2005, there was a 29% increase in tuition at SUNY colleges, and this year, the average SUNY undergraduate will spend $16,880. The Congressional Advisory Committee on Student Financial Assistance stated that financial barriers will prevent at least 4.4 million high school graduates from attending a four-year college over the next decade, and another two million from attending college at all.
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