Sen. Burr on Today’s Student Loan Rate Decrease: Saves $1.08 Billion for North Carolina Families and Students Alone

WASHINGTON – U.S. Senator Richard Burr (R-NC) released the following statement on today’s announcement that federal student loan interest rates are set to drop for the upcoming school year to 3.76 percent, down from last year’s rate of 4.29 percent, representing the best rates for students in 12 years:

“This is great news for students in North Carolina and across the country.  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. Today’s 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.”

Senator Burr and Senator Joe Manchin (D-WV) introduced the Bipartisan Student Loan Certainty Act which was signed into law in August of 2013. Last year, as a result of the Act, student loan rates dropped from 4.66 percent to 4.29 percent.  This rate reduction saved student borrowers $36 billion over the past 3 years.  With today’s rate reduction, students and their families are set to save another $10 billion nationally.

Last month, Senator Burr introduced the Boost Saving for College Act. This bipartisan legislation would provide a tax credit to low-income and middle-income families who might not ordinarily save for college, encourage employers to match the college savings of their employees, allow savings that aren’t needed for college to be rolled over into a Roth IRA for retirement, and enable families with a disabled child to rollover a 529 account into an ABLE account.

Sen. Burr also joined with Senator Angus King (I-ME) to write the Repay Act, which simplifies the complex maze of federal student loan repayment programs by consolidating many of the benefits of current repayment programs into two plans: a fixed repayment plan, based on a 10-year period, and a single, simplified income-driven repayment option. The Repay Act received a unanimous vote of 97-0 in the Senate last spring.

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