U.S. House of Representatives Approves Student Loan Interest Rate Cuts!

Hello

The newly approved College Student Relief Act of 2007 is being termed as a life buoy for students over burdened with loans or the steady surge in interest rates and rising college costs.

Olivia Majesky-Pullmann of DiverseEducation.com was quoted as saying "Phased in over five years, the interest rate on federally backed loans will be cut in half, from 6.8 percent to 3.4 percent."

College Student Relief Act of 2007 has 8 sections as follows:

-SHORT TITLE
-INTEREST RATE REDUCTIONS
-REDUCTION OF LENDER INSURANCE PERCENTAGE
-GUARANTEE AGENCY COLLECTION RETENTION
-ELIMINATION OF EXCEPTIONAL PERFORMER STATUS FOR LENDERS
-REDUCTION OF LENDER SPECIAL ALLOWANCE PAYMENTS
-INCREASED LOAN FEES FROM LENDERS
-INTEREST PAYMENT REBATE FEE

You can check out the actual act here:
http://thomas.loc.gov/cgi-bin/query/D?c110:2:./temp/~c110Uu36eO::

Thank you

Unfortunately, the act has not yet passed in the Senate...so as of now, it isn't law......

This means nothing for people with Private loans though correct..

Yeah,

My private loan interest rates are killing me.

Why won't this be a good thing?

I don't see how this bill would allow colleges to increase their budgets, since it does NOT give money to them directly. What this bill would do is provide financial relief to those who depend on federal loans to fund their education.

From the federal government's point of view, something like this would probably be a good idea, because a more educated population produces more, and therefore pays more taxes. For them, something like this is really just a wise investment.

This bill would disproportionally benefit students from lower income households, because they are the most dependent on such loans. Therefore, this bill would promote equal opportunity for those facing the greatest financial obstacles to higher education.

Lastly, if universities can expand their budgets without increasing tuition, I'd count that as a win.

I'm totally in agreement. We need this bill to be law because college tuition is extremely expensive and a hardship on students. Go Cougars!