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Congressman Cole Votes for Bill to Help Forgive Teacher Loans

October 7, 2004
Press Release

Washington, D.C. – Congressman Tom Cole voted today for The Taxpayer-Teacher Protection Act (H.R. 5186) that will provide teachers additional loan forgiveness on Federal student loans. Under this legislation, teachers would be eligible for up to $17,500 in student loan forgiveness, more than triple the maximum of $5,000 available in current law.

"Students should be the beneficiaries of federal student loan programs, not lenders. This legislation makes an important change in the nation's financial aid system by redirecting excessive lender profits to the student. These resources will be better spent helping teachers pay back their student loans, which is the main priority of the student loan program," Congressman Cole said.

H.R. 5186 would end the 9.5% subsidy on certain loans and use the savings to expand loan forgiveness for teachers who agree to teach in high poverty schools. This subsidy allows companies to earn as much as 9.5 percent on certain loans, almost three times the standard rate on federal Stafford loans, a common loan program, costing taxpayers millions each year.

"By closing this loophole, we can use the savings to help teachers who work in low-income schools teaching high need subjects like math, science and special education," Congressman Tom Cole said.

H.R. 5186 passed in the House today.