U.S. Congressman John P. Sarbanes (D-Md.) today applauded legislation passed by the House of Representatives that extends for another year the current 3.4 percent interest rate on need-based student loans. The rate was set to double to 6.8 percent on July 1st.
"Education is the key to re-igniting the American dream," said Congressman Sarbanes, who authored the Education for Public Service Act. "College should be an affordable and accessible choice for all students who wish to pursue it. The federal student loan program is critical to helping students afford tuition and we must maintain low interest rates so they aren't crippled financially when they graduate and enter the workforce."
By keeping the interest rate from doubling, student borrowers in Maryland will save approximately $955 throughout the life of their loans.
Congressman Sarbanes is a champion for students who struggle with higher education debt. In 2007, he introduced the Education for Public Service Act, which became law as part of the College Cost Reduction Act. The measure provides reduced monthly repayment and total loan forgiveness after ten years of work in public service.
The extension of the 3.4 percent rate on need-based student loans passed as part of the Surface Transportation Reauthorization Conference Report. The bill, which also passed in the Senate, will now be sent to the President for his signature.