The bill, introduced on Jan. 12 by Rep. George Miller (D-Calif.), will put into motion a series of interest rate cuts on federal student loans over four years that will reduce the amount students have to pay.,”

Within the next few years, college students could expect some relief from interest rates on federal student loans.

On Jan. 17, the U.S. House of Representatives passed the College Student Relief Act, also known as H.R. 5.

The bill, introduced on Jan. 12 by Rep. George Miller (D-Calif.), will put into motion a series of interest rate cuts on federal student loans over four years that will reduce the amount students have to pay.

The bill has been referred to the U.S. Senate's Committee on Health, Education, Labor and Pensions.

Marquette Dean of Undergraduate Admissions Roby Blust said he thinks the cut in the interest rate is going to be a positive change for students.

"Marquette has a very strong loan repayment rate," Blust said. "Students at Marquette are really (conscientious) about loan payments. This should provide some relief in the long term."

The current interest rate on federal student loans is 6.8 percent. Under the bill, this rate will be cut in half with five steps, leaving it at 3.4 percent in 2011.

At this point, the rate is set to go up again beginning in 2012. However, additional legislation could make the cut permanent.

"This bill meets Democrats' promises to make college more affordable in a fiscally responsible way," said Rachel Racusen, spokeswoman for the House Committee on Education and Labor, in an e-mail. "Democrats will make the 3.4 interest rate cut permanent for the 2011-'12 year and beyond through subsequent legislation."

According to Ashley Glacel, communications director for Rep. Gwen Moore (D-Wis.), who represents Milwaukee, the cut in the interest rate should start to have a significant effect on students graduating after 2011. During the life of their loans, the average amount those students save will be $2,280.

"When the cut is fully phased in, the average student starting in 2011 will save $4,420," Glacel said. "That's a used car."

While the bill will save the 5.5 million students that take out federal loans each year plenty of money, it will cost the government quite a bit more.

"The cost of this bill is $5.85 billion over five years," Racusen said.

According to Glacel, the majority of students who take out federal loans are from middle class families with incomes between $26,000 and $91,000 per year.

While there are not any current plans to increase the amount of money awarded through Pell Grants, Moore has said she thinks increasing them is just as important as cutting interest rates.

"President Bush has said he will veto this bill because he thinks we should be increasing Pell Grants, but this is not an either-or scenario," Moore said in a press release. "We don't need to pit the middle class and the poor against each other – we should make educational opportunity available for all students."

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