Friday, December 14, 2001
CONTACT: Ellynne Bannon
The State PIRGs' Higher Education Project Applauds Senate
Passage of Student Loan Interest Rate Legislation (S. 1762)
Statement of Ellynne Bannon, Higher Education Advocate
We are very pleased by the Senate passage of the Johnson student
loan interest rate bill (S.1762). This legislation is an important
step in making college more affordable for millions of Americans.
S.1762 will lower interest rates on Federal student loans
and even conservative estimates show that it will save the
typical student borrower $680 over the life of their loan.
last several months, we've worked closely with other student
advocates and the lending community to develop a compromise
that will deliver low cost loans to student borrowers and
maintain the stability of the guaranteed student loan program.
We're confident that S.1762 does this and we applaud the passage
of this provision.
costs skyrocket, and grant aid decreases, increasing numbers
of students are turning to loans as the primary mechanism
to finance a college education. The typical student graduates
with more than $16,000 in debt. One third of all seniors graduate
with more than $20,000 in student loan debt. S.1762 is a key
step to ensuring that college is affordable for the average
the U.S. House of Representatives to take up and pass S.1762
before Congress adjourns for the year.
State PIRGs are non-profit, non-partisan public interest
advocacy groups. The Higher Education Project was established
in 1994 to secure more aid for students, with a focus on additional
grants, reduced debt, and better service to students in the
federal financial aid system.