Rep. Tim Bishop, D-N.Y., also argued that lower interest rates promote college access. A former admissions counselor and college provost, Bishop said high school students know the financial pressures of college and are leery of high-interest loans.
“High monetary obligations scare people off,” he said. “It affects access.”
Other Democrats said the move may help scale back a $12 billion cut in student loan programs enacted by Congress a year ago.
“Last year we said we were going to take America in a new direction,” said Rep. George Miller, D-Calif., chairman of the House Education and Labor Committee. “Today, by voting to cut student loan interest rates in half, we are showing we meant it.”
Sponsors say the College Student Relief Act will save the average student $2,280 for loans taken out in 2007. The typical student takes out about $17,500 in loans.
The Senate has not yet scheduled a vote on the measure. Some lawmakers have indicated they want to consider the rate change as part of a larger package of higher education improvements.
--Charles Dervarics
© Copyright 2005 by DiverseEducation.com
