U.S. Representative Colleen Hanabusa (HI-01) released the following statement after President Barack Obama signed a bill into law that restores lower interest rates for millions of students with Stafford student loans:
"This law reflects our country's commitment to ensuring all Americans have access to a quality education, and provides great relief for the millions of students that would have been affected by higher interest rates on their student loans. In Hawaii, that means the more than 17,000 student borrowers for the 2012-2013 academic year are saving $1,500 on average over the life of their loans thanks to this new law.
"I am pleased we were able to come to a compromise on this bill by instituting caps on the market-based interest rates so hardworking families would not be suffocated with student debt. When we make education affordable by investing in our students, we help open doors for individuals, better our communities, and ensure that the United States remains competitive in the global economy. I would like to thank President Obama for quickly signing this important legislation into law."
The bill ties Stafford student loan interest rates to the 10-year Treasury-note yield, resulting in a 3.86 percent interest rate for the upcoming academic year.