Barbara Lee Votes to Make College More Affordable
(Washington, DC) – Congresswoman Barbara Lee (D-Oakland) voted for H.R. 5, part of the Democratic 100 Hour Agenda that would help make college more affordable by cutting the interest rates in half on certain subsidized student loans over the next five years. The measure passed by a vote of 356-71.
“Making college more affordable is part of the commitment we made to the American people, and I am proud to say that today we are making good on that commitment,” said Lee.
H.R. 5, the College Student Relief Act, is designed to make college more affordable and accessible by cutting the interest rate on subsidized student loans for undergraduates in half over the next five years – cutting the interest rate from the current 6.8 percent to 3.4 percent. This proposal is targeted on assisting the low- and middle-income students and their families with the most financial need – those who receive subsidized student loans. Once fully phased in, this bill would save the typical borrower, with $13,800 in subsidized federal student loan debt, approximately $4,400 over the life of their loan.
According to U.S. PIRG’s Higher Education Project, about five and a half million students borrow subsidized Stafford loans every year. Of those borrowers, nearly three and a half million attend four-year public or private non-profit institution. According to the Congressional Research Service, 65% of traditional-age subsidized Stafford borrowers come from families with incomes between $26,000 and $91,000. The median income for an American family of four is $65,000.
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