Bill could lower rates on loans
By Chris Hall | September 8, 2005The Education Committee of the United States Senate introduced its version of the Higher Education Act this week, an act which will determine federal education policy for the next six years. The Senate's bill differs from the corresponding legislation passed by the House of Representatives in July of this year on multiple points, including interest rates for federal student loans, college reporting requirements and the recommended maximum Pell Grant. The Senate Committee's bill seeks to lower the interest rate on student federal loans to a fixed rate of 6.8 percent from the current variable rate of 8.25 percent. The Senate legislation also includes numerous reporting requirements for colleges, requiring that they report the costs of tuition and attendance, the amount of financial aid awarded to students and teacher training, among other things.


