Democrats look to decrease Student Loan Rates

On Wednesday, House Majority Leader Steny Hoyer (D-MD) released a calendar indicating when bills for the Democrats' well-publicized and ambitious first 100 legislative hours of the 110th Congress would be scheduled for consideration. Sandwiched between days dedicated to debating bills increasing the minimum wage and expanding stem cell research (among other issues) is Jan. 17, the day Congress will debate and, presumably, Democrats possibly with Republican votes, will pass a bill cutting student loan interest rates.
House Committee on Education and Labor Chairman George Miller (D-CA) this week circulated a Dear Colleague Letter soliciting cosponsors for his College Student Relief Act of 2007. The legislation is expected to be introduced soon. The College Student Relief Act of 2007 would reduce interest rates for undergraduate borrowers, beginning on July 1, 2007,on their NEW, SUBSIDIZED Stafford loans, phasing-in the reduction over the next five years from the current 6.8 percent fixed rate to 3.4 percent fixed rate when the reduction is fully implemented five years from now.