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King Votes for Smarter Solutions for Students Act

Washington, DC- Congressman Steve King released the following statement last week after voting for H.R. 1911, the Smarter Solutions for Students Act. The legislation ensures that interest rates will not double for students on July 1, 2013, the rate will instead reset once each year based on market forces. Interest rates would be set using this formula- Stafford loans (subsidized and unsubsidized): 10-year Treasury Note plus 2.5% capped at 8.5%, and PLUS loans (graduate and parent): 10-year Treasury Note plus 4.5%, capped at 10.5%.

“Moving the student loan program to a market based interest rate is a smart and reasonable solution to this problem,” said King. “The Smarter Solutions for Students Act resets student loan interest rates once a year, tying rates to move with the market and allowing borrowers to take advantage of lower interest rates. Politicians should not be determining student interest rates and using the rates as political leverage. Now, students can have more certainty when they borrow because of the caps put in place, and reassurance that their rates will reflect the free market and not the whims of Washington.”

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