Congressman John Shimkus (R, Illinois-15) supported House passage of the Smarter Solutions for Students Act (HR 1911), which passed Thursday.
"Without taking action, student loan rates would go from 3.4 percent to 6.8 percent on July 1," Shimkus explained. "The House Republican solution is to take this out of the political process, and tie student loan interest rates to the 10 year Treasury note rate."
Student loan debt is second only to home mortgages with a balance of nearly $1 trillion nationwide. The average student graduates with $26,000 in loans.
"In reality, many students have far greater debt that can be a burden. This plan could result in lower interest rates at the current time," Shimkus added.
The bill now moves to the Senate for consideration.