Student Loan Fiscal Cliff July 1st
Reed urges Senate to pass a bill to avoid the cliff.
(WENY)-- The school year might be winding down but student financial talks are heating up in Washington.
Today, Congressman Tom Reed weighed in on the looming Student Loan fiscal cliff set to hit on July 1st. If a new bill isn't passed before then, federally subsidized student loan interest rates would double from 3.4 to 6.8 percent.
Last month, the House passed a bill that would have a market based approach to both subsidized and unsubsidized loans. According to Reed, the net result would be a significant reduction in loan payments for students.
Reed says "I believe that you should have the flexibility as a student to take advantage of improving market conditions when it comes to interest rates and you can do it multiple times".
Reed says any legislation passed would only impact future student loans.