Student Loan Consolidation Lowdown

– Pushpa Sathish, Staff Writer

Students across America were given something to cheer about when a whopping majority in the House of Representatives voted to reduce interest rates on Stafford loans. The Bush administration had increased the interest rate to 6.8 percent, a figure that is higher than the market rate. The new bill, will decrease the amount to 3.4 percent over a five-year period. After six months, the rate will return to the original percentage. Pell Grants and student tax credits have not been increased. Around 5.5 million students with Stafford loans are expected to benefit through this move. Contra Costa Times reports:

However, Congress should not stop there. Rep. George Miller, D-Martinez, chairman of the House Education and Labor Committee, offered some promising words when he said of the bill, "This is a down payment." The next steps should be to make the lower interest rates permanent, increase Pell grants and establish tax credits or deductions for college expenses.

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