More cash books: Cheaper student loan interest by July 1st

On a conference call, Rep. George Miller (D-Calif.), Sen. Sherrod Brown (D-Ohio), Luke Swarthout, a higher education advocate from the U.S. Public Interest Group, and Quin Gonell, president of the Student Government Association at Salem State College, discussed the many benefits of the upcoming College Cost Reduction and Access Act for students who are struggling to pay off debts.

Acccording to Rep. Miller, by July 1st, the act will decrease student loans from 6.8 percent to 6.0 percent. Over the next few years, these rates will continue to decrease until they reach 3.4 percent.

In Ohio, 66 percent of students graduating from 4-year institutions had loan debt, and the average debt was $20,000, Sen. Brown said. According to Sen. Brown, the problem is that states are spending more on college, but federal help is not increasing.

Programs like Stafford loans and the Loan Forgiveness program will help students pay off debts through public service, Sen. Brown said. About 5.5 million students use Stafford loans each year, and of these students, 3.3 million attend 4-year public or private institutions, Luke Swarthout said. 75 percent of these students come from low to medium income families. Stafford loans can save the average freshman about $2,600 during the life of their loan, Swarthout said.