Representative Frank Guinta (R, NH-01) today voted for the passage of H.R. 4628, the Interest Rate Reduction Act. It would extend the current 3.4 percent rate for college undergraduate recipients of Federal Direct Stafford loans. Without congressional action, that rate will double on July 1. The bill was approved in a 215 to 195 vote.
To pay for maintaining the lower interest rate, the measure would reallocate nearly $6 billion by eliminating the Prevention and Public Health Fund created in the new national healthcare reform law.
Guinta made the following statement after the vote:
"As the Class of 2012 prepares to leave college soon, many '11 grads are still trying to find a job. Students, graduates and their families are struggling with hefty college costs in a sluggish economy. They don't need their student loan interest rate to double on July 1. This bill will help them continue repaying their loans, and does so without adding a new burden to taxpayers."
The bill now goes to the Senate for consideration.