Reverse the Raid on Student Aid Act of 2006

The Reverse the Raid on Student Aid Act of 2006 (H.R. 5150) proposed a significant reduction in interest rates for federal student and parent loans issued on or after July 1, 2006. Under this legislation, interest rates for subsidized Stafford loans would have dropped to 3.4% for students, while rates for parent (PLUS) loans would have been lowered to 4.25%. These changes were intended to reduce the long-term cost of higher education for low-income students and families, though the bill maintained the existing 6.8% interest rate for unsubsidized loans typically used by middle-income borrowers.