House lowers rates on student loans

The U.S. House of Representatives voted to reduce interest rates on federal loans for college. The College Student Relief Act of 2007 (H.R. 5) was part of the Democrats' first 100 hours initiatives.
The legislation would cut interest rates on need-based federal loans
for undergraduate students to 3.4 percent from 6.8 percent between now and 2011. U.S. Rep. George Miller (D-Calif.), who introduced the bill, said the rate reductions will be funded by "making the program more efficient and effective tor students and the government, at no new cost to taxpayers." Fees for lenders would increase. Tuition and tees at four-year public colleges and universities have risen 41 percent after inflation since 2001.