House Cuts Student Loan Interest Rates

House cuts student loan interest rates

Today, as part of the "100 Hours" agenda, the House of Representatives passed H.R. 5, the College Student Relief Act of 2007. Congressman Silvestre Reyes, D-El Paso, voted in favor of the bill.

This bill will cut interest rates in half for undergraduate students with subsidized student loans over the next five years. If enacted into law, the College Student Relief Act of 2007 will cut interest rates to 6.12 percent on July 1, 2007, and will continue to decrease rates until they reach 3.4 percent in 2011.

Under this bill, UTEP students enrolling in 2007 would save $2,300 on an average debt of $13,800, and students enrolling in 2011, when the full interest rate cuts take effect, would save over $4,400 on the same amount of debt.

"Today, the House invested in our nation's best resource - our youth," said Reyes. "This bill will help students who need it most, and is significant to the strength of our nation's economy and security as well. By making college more affordable for our young people, we are also paving the way for these students to seek careers in high-tech, innovative fields where the U.S. is currently lagging.

"Especially in El Paso, we look forward to a dynamic economy that will provide quality jobs in sectors such as military and military contracting, health care, and education," said Reyes. "The Future Combat Systems, El Paso's new four-year medical school, and the 2005 Base Realignment and Closure (BRAC) decision that will bring 20,000 new soldiers and their families to El Paso will all contribute to these opportunities. Furthering young El Pasoans' education is more important than ever - and the passage of this bill will help us do just that."

http://wwwc.house.gov/reyes/news_detail.asp?id=1087