The College Cost Reduction and Access Act went into effect today, cutting interest rates on federal student loans. The Act, H.Res.2669, lowers interest rates on federal student loans from 6.8 percent to 6.0 percent and will ultimately decrease these rates to 3.4 percent over the next four years.
Aside from interest rate cuts, the Act also increases the maximum award available through Pell Grants and seeks to provide a decreased burden on those entering public service professions through expanded tuition assistance and loan forgiveness programs.
“The Democratic Congress believes that making college more affordable is one of the most important things we can do to invest in our nation’s future and build a stronger middle class. This first interest rate cut is just the beginning of our efforts to remove the many financial barriers that prevent far too many qualified students from being able to pursue a college degree,” said House Committee on Education and Labor chair George Miller in a press release.