Helping Students With Lower Interest Rates
Press Release
U.S. Congressman Mike McIntyre voted for and the U.S. House of Representatives yesterday approved bi-partisan legislation that would reverse the July 1 student loan interest rate hike. This measure provides students and parents $25 billion in student debt relief through lower interest payments over the next several years compared to current law.
Congressman McIntyre stated, "North Carolina undergraduate students and families who are getting ready to head back to school will get some relief with passage of this bill! Interest rates on their Stafford student loans are reduced from 6.8 percent to 3.86 percent, saving them nearly $1,500 in interest over the life of the loan. This bill is a win-win for our students and their families, but we must keep working to make college more affordable. Working together and finding solutions to problems is the recipe for continued success in meeting our nation's challenges, and I will continue to press and work with my colleagues to use this victory as a launching pad to other pressing matters."
The Student Loan Certainty Act will benefit students and families in a number of ways including:
- Provides Students $25 Billion in Debt Relief Over the Next Five Years - Under the bi-partisan legislation, college students and their families would save $25 billion in lower interest costs from 2013-2018, compared to current interest rates.
- Locks in Interest Rates for the Life of the Loan - The bi-partisan legislation allows students to lock in today's historic low interest rates for the life of the loan and "know what they owe' before signing on the bottom line.
- Provides a Reasonable Cap to Protect Students from Rising Interest Rates - The bi-partisan legislation now has interest rate caps that allow students to fully benefit when interest rates are very low, but protects them when interest rates go up sharply by capping them at 8.25 percent.
The bi-partisan legislation is supported by a coalition of the nation's leading student, higher education, and financial aid organizations.
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