Education & Opportunity

There's a big vote this week in the U.S. House of Representatives that has the potential to impact student loan interest rates. The proposal from Democrats would reduce the rate on subsidized Stafford loans--loans that are qualified for on the basis of financial need--from 6.8 to 3.4 percent.

Unsubsidized Stafford loans (non-need-based loans) and PLUS loans (loans taken out by parents) would not be reduced by the proposal despite past campaign promises to reduce those rates as well.

If passed, the rate cut for subsidized student loans would be phased in over 5 years.