05.15.13

GOP Student Loan Bill Would Make College More Expensive, a New Independent Nonpartisan Analysis Shows

New data from Congressional Research Services shows students and families will pay higher interest costs than today

WASHINGTON, D.C. – House Education and the Workforce Committee Democrats released new data from the independent, nonpartisan Congressional Research Service (CRS) that shows that the House Republican student loan proposal (H.R. 1911) will increase the cost of students and families to pay for college. The Republican bill is scheduled for a committee vote tomorrow.  

“It’s clear that the Republican student loan proposal will increase the cost of education for students and families. Instead of adding billions in new debt onto borrowers, Congress should keep student loan interest rates affordable in the short term to ensure that a college degree remains within reach for students and families,” said Rep. George Miller (D-CA), the senior Democrat on the House Education and the Workforce Committee.

CRS found that student and families would pay higher interest costs under the Republican proposal than they do today – even if interest rates doubled as scheduled for the neediest students in July. The figures below are based on a standard repayment period of ten years:

  • Students who borrow the maximum amount of subsidized Stafford loans over five years would pay $10,109 in interest payments under the Republican bill, $4,174 if rates were kept at 3.4 percent or $8,808 if rates are allowed to double to 6.8 percent in July.

  • Students who borrow the maximum amount of subsidized and unsubsidized Stafford loans over five years would pay $14,430 in interest under the Republican bill, $12,598 if subsidized loans were allowed to double to in July, or $7,965 if rates don’t double.

  • Parents and graduate students would also pay more under the Republican bill. For instance, a parent who borrows the maximum amount for their child over five years would face $35,848 in interests payments under the Republican bill, more than the $27,956 under current law.

For a copy of CRS’s report, click here.