Rep. Tulsi Gabbard Votes to Cut Interest Rates for Federal Student Loans

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Tulsi Gabbard

Washington, DC – Congresswoman Tulsi Gabbard today voted for passage of the Bipartisan Student Loan Certainty Act, which reverses the student loan interest rate hike that went into effect on July 1, 2013.

Under the bill, today’s undergraduates will borrow at 3.68 percent, a cut from the 6.8 percent rate that is currently in place. The House and Senate have overwhelmingly approved this legislation by a vote of 392-31 and 81-18, respectively. 

“While the cost of higher education continues to skyrocket, it is crucial that students are not further burdened by significant student loan interest rates,”said Congresswoman Tulsi Gabbard.

“While this bill does not lower the pressing issue of college affordability, it is certainly a strong step toward ensuring that our students are not set back by debilitating interest rates. I will continue to work with my colleagues in Congress to identify and pursue creative solutions to support our students and ensure they start on strong footing after graduation.”

Compared to current rates, the Bipartisan Student Loan Certainty Act is projected to save students $25 billion in lower interest costs from 2013-2018.  It will allow students to lock in today’s historic low interest rates for the life of the loan.

 


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4 COMMENTS

  3. manipulating the interest rates lower for federal loans is just an emotion and political driven scheme,a wage and price control manueaver which doesn't even begin to solve the underlying causes of high tuition and increasing student debt. Artificially lowering of interest rates,like the Federal Reserve is doing only encourages more students to apply for more loans.it creates cheap money and more of it.chances of defaulting on the "cheap" loans will only increase,I think. Especially because for insane and irresponsible reasons these Federal loans are guaranteed by the Federal gov't.!!!meaning taxpayers will have to foot the bill for all student loan defaults.stunt loan debts are a crushing blow on students and taxpayers and a moral hazard for our nations well being and future college kids. the only solution is to pass a bill to eliminate Guarantee federal loans completely.the free market is theonly way to go.common sense!!

  4. @congresswoman tulsi gabbard- an item that cost $1.00 in 1995 (the year that people were born that would start college this year) that same item would cost $1.53 today.that is a whopping 53% loss of purchase power of a buck in just 18 years!! that's one reason for high tuition.if you and the other politicians in DC intervene to lower loan interest rates,it will just further erode the value of the dollar putting more hardship on future college students.

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