Stephanie Cousriff has accrued about $50,000 worth of loans while pursuing a degree at Kansas University.

As she approaches graduation after seven years of juggling work and school, Cousriff, of Hays, must repay the principal on her loans – $50,000 – and between $19,000 and $54,000 in interest, depending on a variety of factors including how long it takes her to pay back the debt.

The U.S. House of Representatives is hoping to provide relief to future college students through a bill that it is expected to be voted on today.

The proposed legislation – H.R. 5 – would cut the interest rate on subsidized Stafford loans from the current fixed 6.8 percent to a fixed 3.4 percent over five years. It is a part of the Democrats’ much-talked about “first 100 hours” initiative.

The proposed legislation would reduce the rate on new loans in .68 percent increments each year until 2012, but would not help current borrowers such as Cousriff.

Subsidized Stafford loans, which are available to students with a demonstrated financial need, accrue interest once they’re issued, but the federal government pays the interest for up to six months after the student leaves school. Subsidized Stafford loans have a lifetime maximum disbursement of $23,000 over a student’s academic career.

If a student were to take out the maximum amount in subsidized Stafford loans, the savings would total about $4,600 if the loan were repaid over 10 years, according to the nonprofit Project on Student Debt. The student’s savings would grow – though total expenses would as well – if it took the sometimes-allowable 25 years to pay off the loans.

Students with large debt loads are sometimes granted up to 25 years to repay their loans.

The legislation

Rep. Dennis Moore, a Democrat who represents eastern Lawrence, is in favor of the legislation but said it was only a start.

“Making higher education more accessible for all Americans has long been one of my highest priorities and I believe that the Democratic proposal to cut interest rates on subsidized student loans is a great first step,” he said in a statement. “But it is only a first step, and we must continue to make progress on this issue, particularly by increasing the maximum Pell Grant.”

Pell Grants, a federal entitlement program for low-income students, do not have to be repaid. The maximum is now $4,050 a year.

If the bill is passed today, it would advance to the Senate, where Sen. Edward Kennedy, D-Mass., has his own proposal. He’s endorsed the House proposal, but is in favor of what he’s described as a more comprehensive proposal.

Kennedy’s proposal would increase the size of Pell Grants, limit the size of monthly loan payments and forgive certain loans granted to those who enter a career in public service.

Some critics have complained that the House proposal has fallen short of what Democrats promised before the election.

Rep. Nancy Boyda, D-Kan., who is among the bill’s co-sponsors, said Tuesday night that she thought the legislation was “a big deal.”

“Tuition and fees have increased. Interest rates have gone up 2 percentage points in the last five years. It’s a perfect storm,” Boyda said.

While campaigning, Democrats said they would increase the size of Pell Grants and did not differentiate between subsidized and unsubsidized Stafford loans when committing to interest reduction. There currently isn’t legislation to increase Pell Grants, though there does seem to be broad support for such a change.

Students who receive unsubsidized Stafford loans are responsible for paying back all interest, including what is incurred while the student is enrolled. They would not see a rate cut under the current legislation.

Boyda said she was certainly in favor of increasing the size of Pell Grants as the legislative session moves forward. She added that she didn’t think it had to be one or the other; rather, this proposal was moving forward now because the offsets within the bill helped secure its funding.

In Kansas

The average KU student leaves the university with about $19,003 in debt, said Stephanie Covington, associate director of the KU Office of Student Financial Aid. About 6,700 of nearly 21,000 undergraduates received a subsidized Stafford loan last year. Though undergraduate and graduate students can receive Stafford loans, the legislation only would affect undergraduates.

Current students would not be the primary beneficiaries of the proposed legislation. Because of the phased-in reductions, students taking out a subsidized Stafford loan after July 1, 2011, would be the first to benefit the full amount.

“Our goal is for college to be affordable,” Covington said. “Grants are always better than having to borrow, but any sort of assistance that helps our students is a benefit.”

Estimated costs for the legislation are about $6 billion over five years. Democrats would pay for the proposal by cutting the fees paid to lenders.

Several KU students, including Cousriff, said any savings the legislation would provide would be a welcome relief – no matter the size. While the savings would be only about $30 per month for the average student, Covington said that would make a difference.

“I don’t know that (the reduction) would cause students to choose whether to attend college, but for a family trying to repay loans, every little bit helps,” she said.