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Vote To Make College More Affordable By
Cutting Interest Rates On Student Loans
WASHINGTON - Today, U.S. Representative Tom Udall, D-N.M.,
voted to make college more affordable and accessible by cutting
the interest rate on subsidized student loans in half for undergraduates
over the next five years - slashing the interest rate from 6.8%
to 3.4%. The bill cuts the interest rate in half in five steps:
From 6.8% to 6.12% in 2007; 5.44% in 2008; 4.76% in 2009; 4.08%
in 2010; and 3.4% in 2011.
The House passed the bill this afternoon by a vote of 356
to 71.
"This bill is targeted towards assisting the low-and
middle-income college students and their families with the most
financial need," said Udall.
"In New Mexico, there are almost 21,000 four-year college
students with subsidized student loans, all of whom would benefit
from this legislation," Udall stated. "Once fully phased
in, the bill would save the average four-year college student
in New Mexico starting school in 2011 with subsidized student
loans almost $4,100 over the life of their loans."
"Making college more affordable is particularly important
at a time when the costs of attending college "Tuition and
fees at four-year public colleges and universities have risen
41 percent, after inflation, since 2001 - putting college out-of-reach
for more and more students. Interest rates on student loans have
also risen - increasing the cost of college even more."
"Congress must act at a time when financial barriers
are preventing millions of young Americans from attending college,"
said Udall. "Finally, the health of the American economy
depends on having a highly-skilled and well-educated workforce.
Making college more affordable is key to our nation remaining
competitive in the global economy."
Cutting interest rates on student loans is only the first
step Democrats will take in making college more affordable. Later
this year, Democrats will also increase the maximum Pell Grant
scholarship and take other important steps to reduce the financial
barriers to a college education.
The bill is fully paid for by making modest reductions in
certain lender and guaranty agency subsidies in order to make
the student loan program more efficient and effective for students
and for American taxpayers.
Udall also pointed out that this bill is supported by dozens
of organizations, including the American Council on Education,
National Association of Independent Colleges and Universities,
American Association for State Colleges and Universities, American
Association of Community Colleges, Alliance for Equity in Higher
Education, Hispanic Association of Colleges and Universities,
College Board, College Parents of America, and the Institute
for Higher Education Policy.
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