July 5: Making Higher Education More Affordable

The interest rate on subsidized student loans has been cut in half over the past four years, saving students and families thousands of dollars.

Legislation that was passed by a Democratic-led Congress in 2007 resulted in four annual interest rate cuts, starting in July 2008 when the rate on subsidized student loans stood at 6.8 percent.

The last of the four rate reductions took effect on July 1 and brought the interest rate down to 3.4 percent.

"Making higher education more affordable must be a top priority for getting our economy back on track," said Congresswoman Kaptur, a member of the House Appropriations Committee who voted in favor the College Cost Reduction and Access Act.

"We cut the interest rate in half over a four-year period. As a result, the typical student borrower who will graduate from college next year will have saved $2,750 over the life of their loan."

"Making college more affordable is one of the most important things we can do to invest in our nation's future and build a stronger middle class," Kaptur said. "Millions of students and their families take out subsidized loans each year and this legislation effectively lowers the eventual debt load for students with subsidized loans."

Click here to read more about student aid programs.