Today, Congressman Harold "Hal" Rogers (KY-05) voted in support of H.R. 4628, the Interest Rate Reduction Act, which prevents a scheduled 3.4% increase in interest rates on new federally subsidized student loans. H.R. 4628 extends the current 3.4% interest rate, which was scheduled to increase to 6.8% on July 1, 2012, for an additional year. The House of Representatives passed this measure 215 - 195 and H.R. 4628 now awaits consideration by the U.S. Senate.
"As parents and students are working to line up college funding for next school year, this is welcome news," said Rogers. "This legislation locks in lower interest rates on federal student loans through the Spring of 2013 and makes college loans more affordable in the long-term for students who receive these loans. During a time of economic uncertainty, we should be developing policies for students to expand their skills, receive quality higher education, and make our nation and our region more competitive without saddling tomorrow's leaders with burdensome debt. H.R. 4628 helps accomplish just that. This is a common-sense plan and I am hopeful that the Senate will pass this measure and send it to the President to be signed into law."
To pay for the cost of the rate extension, the measure repeals unspent funding from Obamacare's 2010 Prevention and Public Health Fund, and also contributes $6 billion in deficit reduction. Neglecting to extend the current interest rate would result in approximately 7.4 million undergraduate students with an additional $1,000 in higher interest rate costs over the life of an average loan.
Rogers has served Kentucky's 5th Congressional District since 1981. With a focus on economic development, job creation, fighting illegal drugs and preserving Appalachia's natural treasures, he has a reputation for listening to his constituents and fighting for the region he represents. For more information visit www.halrogers.house.gov or Rogers' Facebook page at: https://www.facebook.com/#!/CongressmanHalRogers. To receive Twitter updates go to: https://twitter.com/#!/RepHalRogers