Jan 17, 2007- Congresswoman Kaptur Votes for Lower Interest Rates on College Loans
"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.