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

"This legislation will make higher education more affordable forstudents-and parents-from working class families throughout our country," saidCongresswoman Kaptur, who voted for the legislation (H.R. 5) that passed theHouse on a vote of 356-71.

"Passage of the College Student Relief act will put higher education withinreach for more students, both traditional and non-traditional students, andmake it more affordable for more than five million Americans," CongresswomanKaptur said.

The legislation, which now goes to the Senate, will cut the subsidizedfederal Stafford loan interest rate from itscurrent 6.8 percent to a new level of 3.4 percent in 2011. The first cut wouldbring 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 studentis enrolled in college.

Congresswoman Kaptur noted that approximately two thirds of all students atfour-year colleges will incur debt to finance their educations. For 173,000 Ohio students, theaverage debt load for education will approach $13,500. The College StudentRelief Act would reduce that debt by an average of more than $2,200 for an Ohio student who startscollege 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 loansunder the Federal Family Education Loan (FFEL) program and the Direct Loanprogram administered by the U.S. Department of Education.