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United
States Student Association
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State
PIRGs' Higher Education Project
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April
29, 2002
The
Honorable C.W. Young, Chairman
House Appropriations Committee
2407 Rayburn House Office Building
U.S. House of Representatives
Washington, D.C. 20515 |
The
Honorable David Obey, Ranking Member
House
Appropriations Committee
2314 Rayburn House Office Building
U.S. House of Representatives
Washington, D.C. 20515 |
Dear Mr.
Chairman and Representative Obey,
We were
pleased to read about the upcoming lower interest rates for
student borrowers, "College loan rates could tumble as
low as 4%", in USA Today last week. The article notes
that interest rates are expected to fall to about 4 percent
in July.
For many
students this will be an excellent opportunity to consolidate
their loans, lock in a low fixed interest rate, and save several
thousand dollars over the life of their loans. As college
costs rise and many students and families struggle to finance
a higher education, consolidation offers important benefits
that make college more affordable. The typical borrower with
$16,928 in federal student loan debt who consolidates at a
rate of 4 percent would save about $2,800 over the life of
their loan. The typical Pell Grant borrower with $18,928 in
federal loan debt would save about $3,100.
We understand
that some federally subsidized loan holders have suggested
raising student consolidation loan interest rates, by changing
the rate from fixed to variable. We urge you to oppose this
proposal because it would cost students thousands of dollars.
Please
accept our gratitude for your leadership and continuing support
to make college more affordable for our nation's students.
Sincerely,
Corye
Barbour
USSA Legislative Director |
Ellynne
Bannon
State PIRGs Higher Education Advocate |
cc: The
Honorable John Boehner, Chairman of the House Education and
Workforce Committee
The Honorable George Miller, Ranking Member of the House Education
and Workforce Committee
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