Congress extends lower rate for student loans

The day before Gov. Tom Corbett signed the state budget confirming that Pitt would receive flat… The day before Gov. Tom Corbett signed the state budget confirming that Pitt would receive flat funding, Pitt students received more good news regarding their wallets.

On June 29, Congress passed legislation that prevents federal Stafford loan interest rates from doubling to 6.8 percent from the current level of 3.4 percent. The 2007 law was set to expire on July 1.

The House passed the bill, a bundle which also included measures for reauthorization of the National Flood Insurance Program and federal transportation funding, by a vote of 373-52. The Senate approved the package by a 74-19 vote.

The extension lasts for one full year, at which time members of Congress will debate whether to extend the measure for student borrowers again.

The Obama administration estimates that more than 7 million students are affected by this legislation.

Pennsylvania Sen. Bob Casey released a statement on June 29 in response to the student loan legislation.

“Anyone with the drive, fortitude and desire to pursue the opportunities afforded by higher education should be able to realize that dream,” the statement said. “Passage of today’s bipartisan legislation to prevent federal Stafford loans from doubling on July 1st will make that a little easier. That increase would have added $1,000 to the debt burden of nearly 400,000 Pennsylvanians, so I am gratified that Republicans and Democrats came together to stop that from happening.”