Bordallo Pleased With Extension of Low Interest Student Loan Rates

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Guam – Congresswoman Madeleine Bordallo says she is pleased with a Conference Committee report’s approving a measure that includes an extension of low interest student loan rates for another year.

The federal student loan rate was about to increase to 6.8%. H.R. 4348 now extends the current rate of 3.4% for another year. That rate would have expired on Sunday.

The release quotes Bordallo as saying: “Increases in student loan rates would have had a significant negative impact on a generation that is already competing with the most difficult job market in decades. Freezing student loan interest rates for an additional year keeps our commitment to our younger generations.”

The Congresswoman also says she has “major concerns with several provisions” in the bill, but she does not say what those concerns are.

READ Congresswoman Bordallo’s release in FULL below:

Congress Stops Student Loan Rate Increase, Passes Surface Transportation Extension Act of 2012
FOR IMMEDIATE RELEASE – June 29, 2012 – Washington, D.C. –

Congresswoman Madeleine Z. Bordallo today issued the following statement on the passage of the Conference Report to H.R. 4348, the Surface Transportation Extension Act of 2012. This bill extends current federal student loan interest rates of 3.4 percent for another year. These rates were set to expire on June 30 and would have increased to 6.8 percent.

This measure prevents the doubling of interest rates on student loans—the equivalent of a $1,000 tax increase on students. The bill was passed in the House by a vote of 373 yeas to 52 noes. The Senate also passed the Conference Report to H.R. 4348 today. The bill now heads to the President for his signature.

The bill also included a five-year reauthorization of the National Flood Insurance Program.

“Although I have major concerns with several provisions included in this bill, I am pleased that Congress was able to compromise and vote to freeze federal student loan rates for an additional year,” said Congresswoman Bordallo. “Increases in student loan rates would have had a significant negative impact on a generation that is already competing with the most difficult job market in decades. Freezing student loan interest rates for an additional year keeps our commitment to our younger generations. I remain committed to ensuring that higher education is financially possible for our students. Higher education should be a necessity that every family can afford.”