Federal student loan interest rates will drop to their lowest levels in 12 years during the upcoming school year thanks to legislation introduced by U.S. Sen. Richard Burr (R-NC).
The Bipartisan Student Loan Certainty Act, introduced by Burr and U.S. Sen. Joe Manchin (D-WV), was signed into law in 2013. As a result of the bill, student loan interest rates dropped from 4.66 percent to 4.29 percent last year — and interest rates will drop from 4.29 percent to 3.76 percent in the upcoming school year.
“This is great news for students in North Carolina and across the country,” Burr said. “North Carolina students and families alone are set to save over a billion dollars. This additional reduction in student loan rates is proof that the Bipartisan Student Loan Certainty Act is working. I fought hard for this legislation because it was the right choice for America’s student borrowers. (The recent) announcement that student loan interest rates are dropping from 4.29 percent to 3.76 percent is a clear sign that the Bipartisan Student Loan Certainty Act is serving the best interest of students.”
Burr also introduced bipartisan legislation last month, the Boost Savings for College Act, S. 2869, which would provide a tax credit to low- and middle-income families that save for college and incentives for employers to make matching contributions.
Burr also coauthored the Replay Act with U.S. Sen. Angus King (I-ME) to simplify federal student loan repayment programs by consolidating them into two plans. One of the plans would be a fixed repayment plan based over a 10-year period, and the other would be an income driven repayment option.
U.S. Sen. Lamar Alexander (R-TN) praised Burr in a floor speech last week and added that nearly 6.4 million people will benefit from the decrease in student loan interest rates.
“There is a lot of talk about student loans and the cost of them,” Alexander said. “Some people don’t look at all aspects of them. In Tennessee, the independent colleges and universities have pointed out to me that the new overtime rule proposed by the Department of Labor would add as much as $850 per student to the cost of tuition at all of the independent colleges in Tennessee, which is an outrageous thing to be doing. Here is an example of real leadership, real action, and real results by the Senator from North Carolina, the Senator from Maine, and the Senator from West Virginia, who by their action in 2013, working with the President, have reduced the cost of going to college for 6.4 million American students. A lot of people can talk; some people can get a result.”