U.S. Senator Jerry Moran (R-Kan.) released the following statement today after Senate passage, by a vote of 81 to 18, of the bipartisan agreement to address federal student loan interest rates. The legislation reverses the July 1, 2013, rate hike on subsidized Stafford loans, and provides a permanent solution for interest rates on all new student loans taken out after July 1. Sen. Moran also recorded audio and video statements that can be downloaded via the links below.
"In the interest of students, parents and taxpayers, I am pleased to support an agreement to address the July 1, 2013, student loan rate hike," Sen. Moran said. "This legislation provides much-needed certainty and savings to all students and families who are working to invest in their futures through higher education. In contrast to current law, this solution lowers rates for all students taking out new federal student loans, while saving taxpayers more than $700 million over the next decade. Higher education is often a family's most important investment, and it is critically important that this legislation is signed into law before students return to campuses and classrooms in a few short weeks. We ought to make certain that everyone has the opportunity to pursue their dreams through additional education."
The House of Representatives passed a bill in May to base student loan interest rates on market rates, and the Obama Administration offered a similar plan in its 2014 budget. The Senate-passed bill bases interest rates on all federal student loans off of the 10-year Treasury bill.