Interest rates on Stafford student loans will be on their way down in the next few years if Congress has its way. The College Cost Reduction and Access Act of 2007 passed the full Congress on Friday and now awaits President Bush’s approval
If made law, the bill would gradually cut Stafford interest rates from 6.8 percent to 3.4 percent by 2011. The lowered rates would only be available to new borrowers but, according to Sen. Chuck Schumer — who held a press conference discussing the interest rate cuts today — other borrowers could eventually qualify for the lowered rates too thanks to a bill on loan consolidation that’s also in the works.
The College Cost Reduction an Access Act of 2007 would also increase Pell grants and would limit the size of monthly loan bills. (For a good summary of the bill, check out this site.)
I called the White House media relations office earlier today to ask if the President is planning on signing the bill. As of 5:15 p.m., I hadn’t heard back. I’ll let you know if that changes.