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January 17, 2007
 
Abercrombie: "We Have to Find Ways to Make College More Affordable for More People" 

Hawaii college students' savings from cut in student loan interest rate will top most states
 
Washington, DC -- U.S. Representative Neil Abercrombie joined with fellow Congressional Democrats today to cut the interest rate in half on Stafford student loans, part of the new Democratic majority’s “100 Hour Agenda” for the 110th Congress.  About 5.5 million students across the country use federally-subsidized Stafford loans every year, most from low and middle income families. 

 

“In today’s rapidly evolving knowledge-based economy, a college degree is the price of a real opportunity for a financially secure future,” said Abercrombie.  “The costs of attending college continue to skyrocket – putting college out-of-reach for more and more students.  Tuition and fees at public universities across the country have increased by 41% in the last five years. We have to find ways to make a college education more affordable for more people.”

 

The Democratic initiative cuts the interest rate for Stafford loans in half over five years.  The phased-in cut was necessary to comply with Congress’ new Pay-As-You-Go standard, which requires that the cost of new measures be offset by increased revenue or corresponding spending cuts to prevent an increase in the nation’s annual deficit.  

 

Today, typical graduates of a four-year college or university in Hawaii who take advantage of Stafford Loans owe more than $14,000 when they graduate.  “With the Democratic cut in interest rates, the average student starting school this year in Hawaii will save $2,360 over the life of the loan,” Abercrombie said.  “In 2011, when the interest rate has been cut fully in half, typical Island students starting school will save $4,580—more than students in 42 other states. 

 

The bill to cut student loan interest rates was the eighth of nine pieces of legislation introduced by Democrats during the first 100 hours of the 110th Congress in the House of Representatives.  To date, the new majority party has approved legislation to:

  1. Reform lobbyist rules and regulations to break the links between lobbyists and legislation in Congress;
  2. Re-establish fiscal responsibility, including the Pay-As-You-Go provision;
  3. Implement all the 9/11 Commission’s recommendations;
  4. Raise the minimum wage for the first time in nearly ten years;
  5. Promote increased federal funding for life-saving stem cell research;
  6. Require Medicare to negotiate lower prices for prescription drugs; and
  7. Cut the interest rates on federally-subsidized Stafford college loans.

 

Tomorrow (Thursday), the House will vote on the final item in the 100 Hour Agenda, repealing millions of dollars in tax subsidies to the country’s major oil companies at a time when they are enjoying record profits, and increasing then nation’s investment in renewable fuels.

 

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