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Public Statements

Congresswoman Susan Davis Moves to Block Rate Increase on Students Loans

Press Release

Location: Washington, DC

Congresswoman Susan Davis (CA-53) cosponsored legislation to block the doubling of interest rates on Stafford student loans set to kick in July of this year. The Student Loan Relief Act (H.R. 1595) would continue the current 3.4% rate through 2015.

"We need to ensure that access to higher education stays within the reach of middle class and lower-income families," said Davis, a senior member of the House Education and the Workforce Committee. "If we want our children - and America, for that matter - to be competitive in the global economy, access to an affordable college education will be key."

In 2007, Congress lowered the fixed rate on Stafford student loans for undergraduate students as part of the College Cost Reduction and Access Act. Set to expire last year, legislation was enacted, with Davis's support, to prevent an increase. The rate will jump to 6.8% if Congress does not act again this year.

An analysis done by the U.S. Public Interest Research Group discovered that students taking out the maximum $23,000 in subsidized student loans would see their debt burden increase an additional $5,200 over a 10-year repayment period and $11,300 over a 20-year period.

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