The interest rate on new federally subsidized student loans this week jumped from 3.4 to 6.8 percent. Congresswoman Suzanne Bonamici (D-OR) has cosponsored legislation to temporarily return to the 3.4 percent rate and is calling on her colleagues to work together for a long term solution.
"Congress should not have allowed the interest rate to double," said Bonamici. "I support legislation to reverse this increase and maintain the 3.4 percent rate, and I'm advocating for a retroactive fix to ensure that any loans initiated with the higher rate are adjusted. This should be a top priority when Congress is back in session next week, and I hope we can find a bipartisan long-term solution."
A study by the nonpartisan Congressional Research Service found that students who borrow the maximum amount of subsidized Stafford loans over five years would pay more than $4,000 in additional interest under the new rate. Bonamici, who sits on the House Education and the Workforce Subcommittee on Higher Education, has advocated for years that higher education should be more, not less, affordable and accessible.