This afternoon, by a vote of 356-71 the U.S. House passed legislation
to lower the interest rates on student loans over the next five years.
According
to an analysis by U.S. PIRG, the move would save the average low or
middle-income borrower starting school in 2007 $2,300 in debt.
“H.R.
5 pays for better benefits for students by cutting excessive federal
subsidies to private lenders,” explained U.S. PIRG Higher Education
Advocate Luke Swarthout. “The bill saves millions of students thousands
of dollars over the life of their loans by eliminating wasteful
subsidies.
The bill, H.R. 5, will lower interest rates on
subsidized Stafford student loans received by five and students. These
loans are used overwhelmingly by students from low- and middle-income
families. The Senate will likely take up the issue of lower interest
rates as a part of a larger package of higher education policies in the
next several months.
“This is a good first step to make college
more affordable for America’s students and families,” said Swarthout.
“We call on Congress to build on this first vote by increasing the
maximum Pell Grant to $5,100 and passing strong protections for student
loan borrowers.”
