Today, Congressman Sires cosponsored H.R. 4816 the "Stop the Student Loan Interest Rate Hike Act of 2012," which extends current student interest rates for one year and fully pays for the cost.
"Student loan interest rates are expected to double in approximately three months, and I am very concerned about how such an increase would impact current and future students," said Congressman Sires. "This legislation is needed now to prevent students seeking higher education from being saddled with even more debt."
This legislation was introduced by my colleague Representative John Tierney (D-MA) and his colleagues on the House Education and Workforce Committee to extend the current rate of 3.4% on subsidized Stafford student loan rates for one year. Over 7 million borrowers are estimated to be affected by the increase on July 1, 2012. If this legislation is implemented, borrowers will save an average of $1,000 in loan repayment costs. H.R. 4816 is fully paid for by closing tax loopholes for oil companies.
"I spent years as a teacher and understand first-hand how important education is to our youth and to our nation," said Sires. "Middle class families are struggling and higher education must remain affordable. This legislation is needed to extend the 3.4% interest rate for one year responsibly, and I am committed to policies that keep college afford for years to come."