Redwood Times – “Interest rates on subsidized student loans cut in half”
Congressmen Mike Thompson (D-CA) announced that the interest rate on subsidized student loans was cut to 3.4% on July 1 - the last of four steps to cut this interest rate in half over four years under the 2007 College Cost Reduction and Access Act. Due to these cuts, the typical student borrower who started college in 2008 will have saved $2,570 over the life of their loan. Under this legislation, the interest rate on subsidized student loans has been cut as follows:
o On July 1, 2008, the interest rate was cut from 6.8% to 6.0%;
Also on July 1, new college affordability information became available to young people and their families on the Department of Education website. This information is to help prospective college students and their families shop for the best value - based on their individual circumstances - for a college education. Students and their families will be provided with early estimates of their expected college costs, and allowed to estimate the annual and total cost of a college education at the individual colleges or universities they are interested in. The site also provides information on incentives for attendance that individual colleges and universities may be offering, such as need-based aid.
In addition to cutting interest rates in half and requiring new online college affordability information, Congressman Thompson and his colleagues have taken numerous other steps to make college more affordable, including: