Thursday, Congressman Luke Messer (IN-06), member of the House Committee on Education and the Workforce, voted to support passage of H.R. 1911, the Bipartisan Student Loan Certainty Act, which will stop interest rates on most student loans from doubling.
“This is a good deal for the 11 million students who will save an estimated $1,500 in interest over the life of their college loans,” Messer said.
As amended by the Senate, the Bipartisan Student Loan Certainty Act will:
Calculate undergraduate Stafford loans using a formula based on the 10-year Treasury note plus 2.05 percent. (Interest on these loans currently would be 3.86 percent.)
Calculate graduate Stafford loans using a formula based on the 10-year Treasury note plus 3.6 percent. (Interest on these loans currently would be 5.41 percent.)
Calculate graduate and parent PLUS loans using a formula based on the 10-year Treasury note plus 4.6 percent. (Interest on these loans currently would be 6.41 percent.)
Protect borrowers in high interest rate environments by including an 8.25 percent interest rate cap on Stafford loans made to undergraduates, a 9.5 percent cap on Stafford loans made to graduate students, and a 10.5 percent cap on PLUS loans.
Provide stability for students by locking in interest rates for the life of the loans, and prevent future uncertainty about whether Congress is going to act in time to change the interest rate.
Congressman Messer also hailed passage of the bill as a win for taxpayers “because they won’t be forced to subsidize arbitrary interest rates set by politicians for political reasons rather than policy purposes.” He added that “I hope this agreement builds momentum for reaching bipartisan solutions to other national problems.”
As a member of the Committee on Education and the Workforce, Messer has been working to make college more affordable and ensure parents and students have the information they need in a user-friendly format to make informed higher education choices. His bill to ensure they have that information, the Improving Postsecondary Education Data for Students Act (H.R. 1949), passed the House unanimously in May and is awaiting action by the Senate.