USPIRG's Higher Education Project just released a new report looking at what the Congressional proposal to cut interest rates in half will mean for students. The interest rate cuts will benefit students with subsidized Stafford student loans.
About 5.5 million students have those loans with most coming from low and middle-income families. 75% of traditional-age students with sub Stafford loans comes from families with $67,000 or less in family income. (for perspective-the median 4-person family income in the US is $65,000)
The interest rate cut will save the average borrower about $4,420 over the life of their loan. Because the cut will be phased in over the next five years a student starting school in the fall of 2007 would save $2,280 over the life of their loan.