Gwen Moore Supports Student Loan Bill

Statement

Today, Congresswoman Gwen Moore (WI-4) supported a bill that would reduce the loan interest rate for students, while saving them billions of dollars. This bipartisan Senate bill passed the House of Representatives with a vote of 392 to 31.

"In May of this year, House Republicans passed legislation that would make college more expensive for our students," said Rep. Moore. "On July 1, student loan interest rates doubled from 3.4 percent to 6.8 percent. During this time of economic uncertainty, I am pleased that my colleagues were able to come to a student loan compromise."

The Senate bill interest rates for undergraduate loans would be tied to the 10-year Treasury borrowing rate, plus 2.05 percentage points. The interest rate for this coming academic year would be 3.86 percent.

"Though this bill is not perfect, in that interest rates vary based on the market with caps at 8.25 percent, it is an improvement over the current high rates. Our students are swimming in over $1 trillion of debt. The Senate bill provides them a lifeline."

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