Student Loan Interest Rate Approved by Congress

Washington, D.C. - The House finally voted to approve the Senate version of the student loan interest rate deal. President Obama is expected to sign the retroactive proposal into law before August to ensure students have enough time to send in their promissory notes for the upcoming semester. This deal would lower the interest rates on Stafford loans, which doubled from 3.4% to 6.8%, by pegging interest rates to the ten-year Treasury note.

While the deal is better than letting interest rates double this year, the undergraduate Stafford loan interest rates are still projected to exceed 6.8% by 2017 and graduate students would see those rates by 2015, with PLUS loan rates also going up. The rates would be capped at 8.5% for Stafford undergraduate loans, 9.5% for Stafford graduate loans and 10.5% for PLUS loans.

The Hispanic Association of Colleges and Universities (HACU) has supported the passage of a student loan deal beneficial to college students for at least two years. HACU continues to work with Congress to find a solution which would protect college and Hispanic students from further interest rate hikes in the upcoming Higher Education Act reauthorization.

Related HACU media interviews can be accessed below.