President Obama made a significant step toward that assure by signing into law the bipartisan student loan interest rate compromise, which advances our nation's promise to students by cutting rates on almost all new loans this year – saving a typical undergraduate student $1,500 more the life of his or her loans.
This legislation allows borrowers to advantage from the low interest rates currently available in the marketplace, guarantees that borrowers are able to lock in these rates over the life of their loans, and protects potential borrowers by capping how high rates can rise.
The signing of this legislation is a key victory for students, one in which Members of Congress from both sides of the aisle came together around the important mission of keeping college affordable for American students and their families.
As President Obama has frequently stated, higher education cannot be a luxury for a privileged few, it is an economic necessity that every relations should be able to afford, and that every young person with dreams and ambition should be able to access.
Making higher education more reasonable is a critical part of keeping that promise, and can’t let high borrowing costs prohibit students from accessing higher education and pursuing their part of the American dream.
Whereas this plan represents an important next step for students and families, it is abundantly clear that we need to do more. Already, President Obama has made momentous investments in college affordability through the development of the Pell Grant program, student loan reform and the creation of the American Opportunity Tax Credit.