House Approves Plan to Cut Student Loan Rates The House of Representatives approves a bill to cut student loan interest rates in half over the next 5 years. The measure passed with bipartisan support. The Democrats' bill would reduce interest rates on college loans for low- and middle-income students, by stepping them down slowly, from the current 6.8 percent to 3.4 percent in five years.
NPR logo

House Approves Plan to Cut Student Loan Rates

  • Download
  • <iframe src="" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript
House Approves Plan to Cut Student Loan Rates

House Approves Plan to Cut Student Loan Rates

  • Download
  • <iframe src="" width="100%" height="290" frameborder="0" scrolling="no" title="NPR embedded audio player">
  • Transcript


From NPR News, this is ALL THINGS CONSIDERED. I'm Michele Norris.


As NPR's Andrea Seabrook reports, the measure also revealed some role reversals among House leaders.

ANDREA SEABROOK: Well, today, the two parties swapped roles. First, Republicans are too weak to swim against the tide of bills that Democrats are bringing to the floor under what are called closed rules. That means Republicans can't even offer amendments on these bills, which irks Georgia Republican Phil Gingrey.

PHIL GINGREY: This very important subject, to try to help low-income students afford a college education. there is a closed rule, immediately doing the things that you railed against us about.

SEABROOK: And there's a lot of support for it. Florida Democrat Debbie Wasserman-Schultz says students may choose a school they like better because they'll be able to afford the payments, or the lower rates may help students choose better careers. For example, Wasserman-Schultz said, today, the country has a tremendous need for nurses and teachers.

DEBBIE WASSERMAN SCHULTZ: Their ability to decide to take that public service job as opposed to a job that, you know, you may not want, but is going to pay you more money so that you can handle your student loans - that's a big deal for American society.

SEABROOK: California Democrat Linda Sanchez says the lower rates will especially help immigrants.

LINDA SANCHEZ: (Speaking in foreign language)

SEABROOK: Today is a tremendous day for those who believe in the American dream, Sanchez said, before a Spanish language television camera. Both of Sanchez's parents are Mexican immigrants who came to the U.S. with very little, and then raised seven children.

SANCHEZ: All of us, through hard work, their sacrifice, a little bit of luck and definitely, through the affordability of college through student loans, graduated from college. So the seven of us are college graduates, and not many families can boast of that, plus two of us are members of Congress.

SEABROOK: Republicans argue that cutting interest rates would only help future college graduates, not people who'd like to go to college and can't afford it. Florida Congressman Ric Keller said the money should have gone to upfront tuition payments called Pell Grants instead.

RIC KELLER: We should have helped people with this $6 billion on the front end, with increased Pell Grants going to college, rather than helping college graduates on the back end.

SEABROOK: But Keller also expressed another common sentiment among Republicans.

KELLER: I'm not here to make fun of the proposal the Democrats have come forward with. I'm going to vote for it.

SEABROOK: Andrea Seabrook, NPR News, the Capitol.

Copyright © 2007 NPR. All rights reserved. Visit our website terms of use and permissions pages at for further information.

NPR transcripts are created on a rush deadline by Verb8tm, Inc., an NPR contractor, and produced using a proprietary transcription process developed with NPR. This text may not be in its final form and may be updated or revised in the future. Accuracy and availability may vary. The authoritative record of NPR’s programming is the audio record.