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Public Statements

Coats Supports Bill to Freeze Low-Interest Rates on Student Loans

Press Release

Location: Washington, DC

Senator Dan Coats (R-Ind.) today co-sponsored legislation introduced by Senators Lamar Alexander (R-Tenn.), Mitch McConnell (R-Ky.) and Michael Enzi (R-Wyo.) that would freeze the interest rate on Stafford college tuition loans at 3.4 percent for loans made between July 1, 2012 and June 30, 2013. The Student Loan Interest Rate Reduction Act of 2012 would be paid for with money from the president's health care law.

"Providing our nation's young adults with affordable higher education is critical to ensuring America remains competitive," said Coats. "Both sides of the aisle are on board with preventing interest rates on student loans from doubling. Congress must ensure students receive the support they need without raising taxes on job creators or adding more to the nation's unsustainable debt."

In 2007, President George W. Bush signed into law a bill that lowered Stafford student loan rates from 6.8 percent to 3.4 percent. If Congress does not act, the federal student loan interest rates will return to 6.8 percent on July 1

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