Congressman Kurt Schrader (D-OR) today cosponsored legislation to prevent the doubling of the student loan interest rate for undergraduate students with Federal subsidized Stafford loans. Under current law, subsidized Stafford loan rates will double to 6.8% on July 1st, 2013 worsening the already burdensome cost of higher education in the United States.
The bill cosponsored by Congressman Schrader would avoid the student loan interest rate from doubling, extend the current 3.4% interest rate for two years and allow Congress time to address a comprehensive, long-term solution to student borrowing in the reauthorization of the Higher Education Act.
"The slower than expected economic recovery and strained job market have taken a huge financial toll on thousands of Oregon students and their families," Rep. Schrader said. "Congress needs to step up now and find a long-term solution to college affordability to not only equip our young folks with the skills and financial resources they need to adequately enter the twenty-first century workforce, but to invest in the future global competitiveness of our country."
The 3.4% interest rate was set to expire on July 1st, 2012. However, Congress responded last year to students needs and acted to protect our nation's students by extending the lower interest rate for one year.