Today, Congressman Sherman (D --CA) helped prevent student loan interest rates from doubling.
Without Congressional action, almost eight million undergraduate students would have seen the interest rates on their need based student loans double from 3.4% to 6.8%. This would have cost the average borrower more than $2,800 in additional interest payments.
The College Cost Reduction Act extension includes provisions that extend for an additional year the 3.4% interest rate for new federally subsidized student loans. Subsidized student loans are necessary for many students and families paying for higher education.
"Our nation should invest in helping young Americans gain the skills and training needed to be successful in our 21st century economy. I remain committed to finding a long-term solution that helps working families avoid large interest rate increases and additional ways to keep college costs from spiraling further."
Since coming to Congress, helping students and families manage the cost of a higher education has been a top priority of Congressman Sherman. In 2012, Sherman supported increasing the maximum Pell grant amount from $4,050 in 2006 to $5,550. Sherman also helped enact the American Opportunity Tax Credit which provides a $2,500 tuition tax credit to eligible students, and loan forgiveness programs for graduates in public interest careers after 10 years, and everyone else after 20 years.