Braley sponsors student loan bill, will visit Coe Thursday

CEDAR RAPIDS - Rep. Bruce Braley on Wednesday introduced legislation that would indefinitely keep the interest rate for federally subsidized student loans at the current level of 3.4 percent.

Braley, a Democrat representing Iowa's First District said unless Congress takes action, student loan interest for subsidized Stafford loans will double to 6.8 percent on July 1, 2012. Under that increase, students taking out the maximum Stafford loan of $23,000 would pay an additional $11,000 in interest over the 20-year repayment period, Braley said in a statement. Iowa college graduates have the third-highest average student debt load in the nation, according to a recent national study.

"Congress needs to act immediately to stop the July spike in student loan interest rates," Braley said in a statement. "Our colleges and universities are avenues of economic opportunity. If America is to succeed in the global economy, we need to keep higher education attainable and affordable for every person who wants to attend."

Braley on Thursday and Friday will visit several eastern Iowa colleges and universities to host campus forums to discuss college affordability, student loan debt and employment after graduation. After a morning visit to St. Ambrose University in Davenport, Braley will visit Coe College in Cedar Rapids for a 1 p.m. open forum Thursday at the Clark Alumni House, 200 College Dr. NE.

On Friday, Braley will host a 1 p.m. forum at the University of Northern Iowa's Maucker Union in Cedar Falls and a 4:15 event at Grinnell College.

In 2007, Congress passed the College Cost Reduction and Access Act which lowered federally subsidized Stafford student loan rates from 6.8 percent to 3.4 percent. Because this act expires on July 1st, 2012, federally subsidized student loan interest rates will return to 6.8 percent without Congressional action.