Congressman Billy Long voted in favor of the Interest Rate Reduction Act, which provides a one-year extension of the 3.4 percent subsidized Stafford Loan interest rate.
"In the House we are taking appropriate steps to ensure college students are not hit with higher interests rates. Students pursuing higher education are making an investment in their future," Long said. "With student loan debt exceeding credit card debt, and with half of recent college graduates who are now jobless or underemployed, we must get serious about creating jobs in this country. The House has passed 27 jobs bills that are awaiting action in the Senate."
The Interest Rate Reduction Act will prevent interest rates on federally subsidized Stafford Loans made to undergraduate students from increasing from 3.4 percent to 6.8 percent on July 1, 2012.
According to the nonpartisan Congressional Budget Office, extending the 3.4 percent interest rate on subsidized Stafford Loans made to undergraduate students for one year would cost roughly $6 billion. The House bill pays for the year-long extension by repealing a slush fund in the president's health care law.