Today, Congressman John Yarmuth (KY-3) issued the following statement on the passage of legislation to keep student loan interest rates from doubling for more than 7 million American students:
"After months of unnecessary delays and obstruction by Republican leadership, Congress approved legislation today that prevents student loan interest rates from doubling," Yarmuth said. "For more than 124,000 Kentucky students, this means an average savings of $1,000 in interest payments. And for future students, it underscores our commitment to broadening access to education for all Americans. Education is the best investment we can make in the future of our country, and with the passage of this legislation we are helping ensure that we maintain the highest-skilled workforce in the world."
The House approved the bill by a vote of 373-52. It extends the current 3.4 percent loan rate on need-based student loans through July 1, 2013. Under current law, the rate would have doubled to 6.8 percent on July 1.
In 2007, the Democratic-led Congress enacted legislation that cut the interest rate on need-based student loans in half -- to 3.4 percent -- over five years.