FOR IMMEDIATE RELEASE: January 17, 2007

LARSON VOTES TO CUT INTEREST RATES ON STUDENT LOANS
Bill would make college more affordable and accessible

WASHINGTON � U.S. Congressman John B. Larson (CT-1) today voted for H.R. 5, the College Student Relief Act, to make college more affordable and accessible by cutting the interest rates on subsidized student loans for undergraduates. Larson is an original cosponsor of H.R. 5, which passed the House with a bipartisan vote of 356 to 71.

�As the parent of a high school student applying to college, I am well aware of the costs of higher education,� stated Larson. �This legislation is aimed at helping low- and middle-income students and their families get over the financial barriers to higher education. Not only will it help students achieve the goal of a college education, it will benefit our economy in this age of globalization to have a more highly-skilled and better-educated workforce.

�Students in Connecticut will benefit substantially from this bill. Our state has over 33,000 four-year college students with subsidized student loans. The savings for four-year students starting college in 2007 with subsidized student loans would average $2,350 over the life of the loan. The average savings would increase to $4,560 over the life of the loan for students starting college in 2011. These savings will be a huge benefit for these students when they graduate and have to choose between paying back their loans and paying for rent, utilities, or health insurance.�

H.R. 5 will cut the interest rates on subsidized student loans for undergraduates in half over the next five years. The bill is 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.

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