Washington, D.C. – Representative Zoe Lofgren (D-San Jose) voted today to make college more affordable and accessible by cutting the interest rate on subsidized student loans for undergraduates in half over the next five years – from 6.8% to 3.4%.  The House passed H.R. 5 this afternoon by a strong bi-partisan vote of 356 to 71.

“All qualified students deserve the opportunity to go to college.  But currently the costs of attending college continue to skyrocket and interest rates on student loans are also on the rise.” said Rep. Lofgren.  “This bill will cut those rates in half, helping parents reach the goal of a college education for their children.”

H.R. 5 will cut student loan interest rates in half in five steps:  from 6.8% to 6.12% in 2007; 5.44% in 2008; 4.76% in 2009; 4.08% in 2010; and 3.4% in 2011.  When fully phased in, this bill would save the average student borrower in California $4,830.  H.R. 5 is paid for by making reductions in certain lender and guaranty agency subsidies in order to make the student loan program more efficient and effective for students and for American taxpayers.

“Making college more affordable helps America to remain competitive in our global economy, and is a priority of Democrats in Congress,” Rep. Lofgren continued.  “Cutting interest rates on student loans is only our first step.  Later this year, Democrats will also increase the maximum Pell Grant scholarship and take other important steps to reduce the financial barriers to a college education.”