Katie Grant, 202-225-3130
WASHINGTON, DC - House Democratic Whip Steny H. Hoyer (MD) released the following statement today on the last of four interest rate cuts on subsidized student loans taking effect to reduce the cost of college:
“Today, the interest rate on subsidized student loans will be cut to 3.4% – the last of four steps to reduce the cost of college under the 2007 College Cost Reduction and Access Act. Enacted under a Democratic-led Congress, this law has cut the interest rate on subsidized student loans in half – from 6.8% to 3.4% over four years. This law was a key part of Democrats’ agenda to make college more affordable and accessible for millions of American students and their families. Due to these cuts, the average student borrower who started college in 2008 will have saved $2,570 over the life of their loan.
“Also beginning today, new college affordability information will become available to young people and their families on the Department of Education website, due to provisions in the 2008 Higher Education Opportunity Act. This information will help prospective college students and their families shop for the best value – based on their individual circumstances – for a college education.
“The Democratic-controlled Congress, between 2007 and 2010, took numerous other steps to make college more affordable. In addition to the provisions that begin today, Democrats increased the maximum Pell Grant from $4,050 to $5,550, made student loan payments more manageable through the Income-Based Repayment Program, and established the Public Service Loan Forgiveness Program to offer eligible students loan forgiveness after 10 years of qualifying public service and loan repayments.
“Education is crucial to our economic success and Democrats believe we must make college more affordable so that we can build a competitive workforce and out-educate our competitors. While Republicans voted to dramatically cut education and job training programs in their budget, Democrats remain committed to making investments that increase American competitiveness and help ensure that the middle class can Make It In America.”