posted on June 29, 2012 16:17
A Bill was passed in Congress today that will stop rates from doubling on student loans.
If lawmakers didn’t act interest rates on new Stafford loans would have increased from 3.4% to 6.8%.
Representative Kathy Hochul voted in favor of the bill.
“After months of uncertainty, I am thrilled the House has finally taken positive action on this issue and guaranteed that our students will not face a doubled interest rate resulting in an increased burden of debt. In today’s economy, we should be working to support our young people in obtaining the training and education they need to enter the workforce. Now, millions of new students will have the opportunity to pursue higher education. I am pleased to join my colleagues in supporting our college students and setting their interest rate,” Hochul said.
Over 100,000 Western New York college students and over seven million nationally receive Federal Stafford Direct student loans. Currently, student loan debt now exceeds $1 trillion, surpassing the total amount of credit debt. The plan includes $6-billion to prevent rates on student loans from doubling.
All the bill needs now is President Obama’s signature.