Affordable college education on the horizon for students

New Jersey college students are in for a huge break on their federal student loans with the recent approval by the House of Representatives of the HR-5 College Relief Act of 2007.

The bill calls for a reduction in interest rates on federal student loans from 6.8 percent to 3.4 percent with an increase in the maximum Pell grant offer to $5,100 for low-income homes. The same bill also calls for a reduction in parent loan interest rates from 8.5 percent to 4.25 percent.

The bill was voted on by the House on January 17 and approved. It now awaits a vote and approval by the Senate. If approved, the bill would go into effect immediately and loans being taken out as of July 1 will have the new interest rates implemented.

Click here to read the entire story (The Whit Online, The Independent Student Newspaper at Rowan University)

Related stories:

• Student Loan Debt, When Student Loans Turn Into Anchors (The Star-Ledger)
• Student Debt Consolidation (Kelly Clark, Market Day)