John Salazar Votes To Cut Interest Rates On College Loans For Students Most In Need

H.R. 5 Would Help Make College More Affordable And Accessible

WASHINGTON, D.C. - U.S. Rep. John Salazar (CO-3) voted today to make higher education more affordable and accessible by cutting the interest rates on subsidized federal college loans.  The College Student Relief Act of 2007 (H.R. 5) would cut the current interest rate of 6.8 percent in half to 3.4 percent on Stafford loans for undergraduates over the next five years.

The House passed this bill by a vote of 356 to 71 with broad bipartisan support.

In Colorado, 45,588 undergraduate students at four-year institutions have federal subsidized loans.  The average debt for a graduate from a four-year college is $13,455.  Under H.R. 5, the average student who starts school in 2007 would save $2,220 over the life of the loan. Students starting school in 2011 would save $4,310.

As one of eight children in his family to go to college, Rep. Salazar says he knows first-hand the power of education to transform someone’s life.  He says he also realizes the heavy burden that school loans can place on a young student who comes from a low-income family. 

“Every high school student who wants to go to college should have the opportunity and access to an affordable, high-quality education,” said Salazar, a cosponsor of H.R. 5. “Money should never be the wall that decides which students will or won’t go to college.  A higher education is part of the American dream that all parents want for their children.”

The bill will make the student loan program more efficient and it will be paid for by reducing payments made to lenders.  There is no new cost to taxpayers.