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.”
