Graves Votes to Strengthen Federal Student Loan Programs

Press Release

U.S. Congressman Sam Graves (MO-06) today voted to strengthen the nation's student loan programs. With Graves' support, the House passed the Smarter Solutions for Students Act (H.R. 1911), which would move all Federal student loans, minus Perkins loans, to a market-based interest rate. This would alleviate the need for Congress to act each year when it comes to determining interest rates. If Congress fails to pass new legislation before July 1, interest rates on subsidized Federal student loans are set to double from 3.4 percent to 6.8 percent.

"This commonsense legislation makes it easier for students and their parents to plan for post-secondary education," said Congressman Graves. "It removes both politicians and politics from the business of student loan interest rates, so that students aren't penalized if Congress fails to act. This is also the fiscally responsible move, as we will save the Federal government $4 billion with this change."

The market-based approach to student loans was proposed by President Obama in his Fiscal Year 2014 Budget. However, unlike the President's plan, the House legislation includes a reasonable cap to protect borrowers against excessive interest rates.

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