Simpson Votes to Cut Student Loan Interest Rates in Half

Simpson Votes to Cut Student Loan Interest Rates in Half

Congressman Mike Simpson supported H.R. 5, the College Student Relief Act of 2007 last night. H.R. 5 would cut the current interest rates on subsidized undergraduate student loans in half.

"College is expensive and getting more so each year," said Simpson. "By lowering the fixed interest rate on subsidized student loans we will ease the financial burden on young people entering the workforce, establishing careers and starting families. It's the right thing to do."

With college costs on the rise, more students have to take out greater loans to cover their tuition and other college costs, while incurring record student debt. In 2003-04, the median student debt borrowed to finance a bachelor's degree was $19,300.

Federal student loan programs provide critical access to postsecondary education to low and middle-income students and their families. H.R. 5 will phase in interest rate cuts over five years for undergraduate borrowers of new subsidized student loans from a fixed rate of 6.8 percent to a fixed rate of 3.4 percent.

http://www.house.gov/list/press/id02_simpson/student_loan.html