Democrats in Congress Cut Student Loan Interest in Half

Wednesday, January 17, 2007
 

Utah State Democratic Party

455 South 300 East Suite 301 | Salt Lake City, UT 84111 | 801-328-1212

 

News Release

January 16, 2007

 

Democrats in Congress Cut Student Loan Interest in Half

Matheson Votes To Help Students and Graduates

Bishop and Cannon? Not so much.

 

WASHINGTON DC - Democrats in Congress took another major step in their first 100 hours agenda today, this time to cut interest rates on student loans in half and help more Americans go to college. The Democratically controlled Congress has already passed several historic pieces of legislation as part of their first 100 hours agenda including bills to reform ethics rules in Congress and end the Republican culture of corruption, to implement the 9-11 Commission recommendations, and to raise the minimum wage, to name a few.

 

The bill approved today would make college more accessible and affordable by cutting the interest rates on subsidized student loans in half - from the current 6.8 percent to 3.4 percent. Once signed by the President, the law will significantly cut the student debt burden of about 5 million students. Here in Utah, students would save an average of $4,160.00 from the Democratic proposal to cut student loan interest rates. [US PIRG, 12/2007]  

 

In-state students at public colleges have seen their tuition and fees increase by 41 percent over the past five years, and student debt "has more than doubled" since Republicans took control of Congress. [http://www.speaker.gov/]

 

"Democrats made a commitment to give more Americans a chance to achieve their dreams of going to college," said Wayne Holland, Jr., Utah State Democratic Party Chair, “today that promise was kept. The new Democratic Congress is off to a great start in passing key bills that will directly improve the lives of Utahns.  While we are disappointed in the votes from Mr. Cannon and Mr. Bishop, we urge Senators Hatch and Bennett, and President Bush to do the right thing, and support this critical move for America's students, and for America's future."

 

 

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BACKGROUND FROM THE 109th CONGRESS

 

Republicans Shortchange College Opportunity

Republican Congress Passes Largest Cut to Student Aid. "Congress cut funding for federal student-loan program on Wednesday, raising the cost of attending college for many future students, according to a published report.  It is the largest single cut the federal government has made to student aid programs and is expected to increase the debt burden of students and their families as many borrowers of student loans will face higher interest payments..." [CNN.com, 2/8/06]

President Bush Proposed Forcing Millions of Low and Middle-Income Students To Pay Thousands More For Their College Loans.  The Bush budget eliminates the current low fixed consolidation rate benefit.  According to the non-partisan Congressional Research Service (CRS), this change will force the typical student borrower to pay $5,500 more for his college loans.   [House Education and the Workforce Democratic Caucus, 2/7/05, http://edworkforce.house.gov/democrats/]

 

President Bush Proposed Raising Taxes On College Students.  The Bush Budget forces a tax on student loans that would charge students billions in additional taxes over the next ten years. [House Education and the Workforce Democratic Caucus, 2/7/05, http://edworkforce.house.gov/democrats/]

 

 

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