Clarke Heralds Reduction in Student Loan Interest Rates

Press Release

Clarke Heralds Reduction In Student Loan Interest Rates

First Phase of Largest College Aid Expansion in Six Decades Kicks In

Rep. Yvette D. Clarke announced effective today, that interest rates on need-based subsidized federal student loans will drop from 6.8 percent to 6.0 percent - making these loans more affordable for millions of low- and middle-income students. This is the first of step towards halving these interest rates - over the next few years these rates will continue to decrease until they reach 3.4 percent. This reduction is a result of the College Cost Reduction and Access Act, which provides more than $20 billion in federal student aid over the next five years.

"I am quite pleased to announce the kick off of the rate reduction for subsidized federal student loans," stated Rep. Clarke. "This decrease in the rate brings much needed relief to students in central Brooklyn and across the nation."

Nationally, 6.8 million students borrow need-based federal student loans each year. The state of New York has more than 240,000 students who take out need-based loans annually at 4 year institutions. On average, New York students will receive a savings of $4,570 in interest per student over the life of the loan at a 4 year college or university as a result in the reduction in the interest rate.

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