Students who use Stafford subsidized loans could see their interest rates halved by 2011, but critics say it's not the solution to increase access to college.

The House passed the interest rate-cutting College Student Relief Act Jan. 17, dropping the rates for subsidized loans over a five-year period, from 6.8 percent to 3.4 percent, until 2012 when the bill will be up for renewal. Proponents say it could save the 5.5 million students who use them thousands of dollars.

About 2,300 students at the University of Nevada, Reno are using only Stafford subsidized loans this school year.

Under this legislation, students receiving the average Stafford subsidized loan starting July 2007 will save $2,280 over the lifetime of their loan. In 2011, the savings for the same loan could be $4,420, according to the U.S. Public Interest Research Group...

The Senate - where Democrats hold a slim majority - will hold a hearing this week to consider similar legislation, namely Sen. Edward Kennedy's Student Debt Relief Act, which will also raise Pell Grants from $4,050 to $5,100. President Bush opposes the House legislation, but has not said he'll veto it...

Stephen Burd, a senior research fellow at the nonpartisan Washington-based think tank New America Foundation, said the number of loans available to students shouldn't be affected because of the cuts.

"Even if it did, there is the direct loan program," he said, noting the loans that a university can give directly to its students by using federal money.

For the complete article, please visit The Nevada Sagebrush website.