WASHINGTON, D.C.- Congresswoman Anna G. Eshoo, D-Menlo Park, voted for bipartisan legislation Wednesday designed to make college more affordable and accessible by cutting interest rates on subsidized student loans in half over five years.
According to the Congressional Advisory Committee on Student Financial Assistance, financial obstacles will prevent at least 4.4 million high school graduates from attending a four-year public college over the next decade.
H.R. 5, the College Student Relief Act of 2007, will reduce the financial burden on undergraduates by cutting interest rates from the current 6.8 percent to 3.4 percent over five years. The relief is targeted to those who need it most ... students and families making between $26,000 and $68,000.
"Once the full rate cut is in place, a typical borrower in California with $15,125 in subsidized federal student loan debt will save approximately $4,830 over the life of their loan," Eshoo said.
Eshoo said the legislation is fiscally responsible because the interest rate cuts are entirely paid for through adjustments in lender rates, participation fees for financial institutions and collection fees for defaulted loans.
The House passed H.R. 5 by a vote of 356 to 71.
Contact: Jeff Miller, (202) 225-8104; [email protected]