Diego Santiago
The future of college students across America is looking brighter, economically speaking, after the House of Representatives voted to cut student loan interest costs in half.
The College Student Relief Act of 2007 will benefit more than five million undergraduate students across the country.
Thousands of dollars will be saved by each pupil with the legislation that was introduced by Rep. George Miller (D-CA), which was approved Jan. 17 by a vote of 356-71.
It is designed to aid low- and middle-income students and will carry no new costs for taxpayers.
It is planned that the legislation will take effect on July 1 and will conclude after a four-year period.
The current interest of 6.8 percent will be reduced to 3.4 percent by the year 2011.
Once fully phased in, these cuts would save the average student around $4,400 over the life of the loan.
Miller’s spokesperson Rachel Racusen said, “Our goal is to ensure that every qualified student in this country who wants to go to college can afford to attend.”
The bill could not come at a better time.
Tuition and fees at four-year public colleges and universities have risen 41 percent since 2001.
According to the United States Department for Education, the average federal student loan debt is $17,500 per person, meaning that the typical student is currently graduating owing that amount.
Also, as many as 200,000 “soon-to-be” students have been forced to delay or cancel their plans to attend college due to the high cost.
Marco De La Garza, Pierce College’s dean of student services, said, “Around 60 percent of Pierce students have some sort of financial aid and there is around $1.7 million in loan volume.”
This means that more than half of the students on this campus can benefit from the legislation, even if Pierce is not one of the most economically powerful educational institutions in the region.
“The impact will not be as drastic with us as with bigger schools like USC, because we have one of the lowest tuitions in the country already,” De La Garza later explained, “But the interest rates should be lower and loans should not prevent someone from having the opportunity to go to college.”
Many Pierce students who are on financial aid, like Eric Valdez, are anxious for the bill to take effect.
“I have many economic responsibilities and the cut on the interest rates will not only help me with my education, but it could also make other things in life more accessible,” Valdez said.
Miller’s bill is the first component of the Democrats’ plans to make college more affordable.
Miller said that during the 110th Congress, Democrats plan to work with students, colleges and other stakeholders to examine increasing tuition costs.