WASHINGTON, D.C. – Congressman Andy Barr todayreleased the following statement today after the House passed the Senate Amendment to H.R. 1911, the Bipartisan Student Loan Certainty Act of 2013 (originally passed by the House as the Smarter Solutions for Students Act):
“Today, I was glad to support a bipartisan, permanent solution that provides more certainty and stability to students and their families. This important reform is a victory for students and taxpayers as it takes the decisions on student loan interest rates out of the hands of politicians and makes it less expensive for students to borrow money for classes, housing and books."
As passed by the House and Senate, H.R. 1911 will:
Calculate undergraduate Stafford loans using a formula based on the 10-year Treasury note plus 2.05 percent.
Calculate graduate Stafford loans using a formula based on the 10-year Treasury note plus 3.6 percent.
Calculate graduate and parent PLUS loans using a formula based on the 10-year Treasury note plus 4.6 percent.
Protect borrowers in high interest rate environments by including an 8.25 percent interest rate cap on Stafford loans made to undergraduates, a 9.5 percent cap on Stafford loans made to graduate students, and a 10.5 percent cap on PLUS loans.
Provide stability for students by locking in interest rates for the life of the loans, and prevent future uncertainty about whether Congress is going to act in time to change the interest rate.
To learn more about H.R. 1911, click here.