Ayotte Backed Legislation Leads to Lowered Federal Student Loan Interest Rates for Upcoming School Year

Press Release

U.S. Senator Kelly Ayotte released the following statement today regarding the announcement that federal student loan interest rates will drop for the 2016-2017 academic year following the enactment of provisions she helped introduce and later supported in the Bipartisan Student Loan Certainty Act. In July 2013, Senator Ayotte was one of the first supporters of key provisions that tied interest rates for new student loans to the 10-year Treasury note. The legislation is projected to now save more than $50 billion in interest payments for students across the country.

"Families and students in New Hampshire and across the country continue to face challenges when it comes to affording higher education, which is why I was an early supporter of legislation that would provide them with some much-needed relief. I'm pleased that similar legislation I supported will now result in billions of dollars of savings for new borrowers, especially students in New Hampshire," said Senator Ayotte. "Our state continues to have one of the highest average of student loan debt burdens in the country, which further underscores the need to explore more ways to help new and current borrowers with the cost of higher education. As someone who worked hard to pay off my student loans, I'm focused on helping give students and families more options, access to lower interest rates, and increased counseling services."

The new rates will go into effect on July 1 for the upcoming academic year and do not apply to individuals who currently have federal student loans.

Additionally, in September of last year, Ayotte introduced the Student Loan Relief Act of 2015 with Senator Shelley Moore Capito (R-WV) that would give the Department of Education the ability to coordinate refinancing federal student loans, which would give borrowers access to lower interest rates similar to the way an individual would refinance a mortgage.

Ayotte is a cosponsor of the Boost Saving for College Act that would provide additional tools to help families save for college, including a tax credit for low and middle income families and encourage employers to create a matching college savings fund for their employees. In addition, Ayotte cosponsored the Repay Act of 2015 which would work to simplify and consolidate federal student loan repayment programs. Last year, the bill received a vote of 97-0 when it was offered as an amendment to separate legislation that came before the Senate.

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