Reed Hopes to Keep Student Loan Interest Down

Jun 6, 2013

On Capitol Hill Thursday the Senate will vote on a bill by Senator Jack Reed that blocks a rate hike on student loans. What’s called “The Student Loan Affordability Act” would keep the interest rate on federal student loans from doubling for two years.

U.S. Senator Jack Reed wants to keep interest rates for federal student loans from doubling in the coming years.

Reed said that’s how long it will take Congress to come up with a long-term solution.

“Then in those two years produce a comprehensive bill that addresses: rates, repayment, and refinancing of existing student loans. And reform of the whole system in terms of the relationship between what are students paying and what they’re getting in terms of career preparation.”

If nothing’s done by July 1st, the interest rate on student loans will double from 3-point-4 percent to 6-point-8. That’s an extra thousand dollars a year for the average student.