House Keeps Promise to Cut Student Loan Rates

Last week, the House passed the College Student Relief Act of 2007, which cuts interest rates on need-based federal student loans for undergraduate students from 6.8% to 3.4% over five years. This bill is an important step to reduce the cost of college for nearly 5.5 million undergraduate students and their families.  The new majority is keeping a promise to significantly reduce student loan rates for students across this country.  Even more importantly, we are keeping a promise for fiscal responsibility.

Unlike the tax breaks for the wealthiest 1 percent of the people in this country, this bill doesn’t add to the deficit.  Unlike the seemingly endless misadventure in Iraq, this bill doesn’t add to the deficit.  Unlike the huge tax breaks for the energy industry at a time when they receive the most profit in their history, this bill doesn’t add to the deficit.  The ways that this bill is paid for invite careful review of how we balance the direct and private loan programs, and they invite careful review of how we adjust the present programs.

This is the change that the American people voted for: help for the middle class, not increasing the deficit, and pay-as-you-go.  I am delighted that the House has passed this vital legislation in favor of middle-class students and deficit reduction, and I will continue my work to reduce the cost of college for all Americans. 

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