Senators are waiting for a more complete CBO score to come in before talks continue, one of the aides said. Congressional staffers are planning to discuss the matter on Friday, while members hope to meet next week. The tentative deal, which would have to pass a Senate vote, calls for interest rates on all government Stafford loans for students to be pegged to rates on the 10-year U.S. Treasury note, according to multiple sources close to the negotiations. The group will need to pass the Senate. After that, it has to clear the GOP-controlled House.
to achieve a high level of education — tied to Americans hope of gaining opportunity and success because of that degree — weighs heavy on the consciousness of the nation. But the debt that is incurred because of it is, ironically, seen as irresponsible, and in some sense, shameful. Debters are seen as bad actors in some sense just by virtue of owing money, said Jarvis And that shouldnt be the case because people have the best intentions. According to the CBO, about $1.4 trillion in new direct loans will be made to students between 2013 and 2023; student-loan debt is the only type of consumer debt that has continued to rise since the start of the financial crisis, increasing from $550 billion to nearly $1 trillion at the beginning on 2013. Helping to inflate those numbers is the staggering rise in the cost of getting a degree. Over the past decade, the rate of increase in college tuition has tripled.
Rising student loan rates endanger the poor, middle class
Get customized DC Decoder updates. The student loan regime would replace a system of fixed rates, with some subsidized loans at 3.4 percent, most other undergraduate loans at 6.8 percent, and several other loans for parents and graduate students ranging upward from 7.9 percent. Chiefly, the proposals sponsors think theyve made the student loan program more accurately reflect the cost of the loans. When Congress fixes a rate, it will always be wrong, Senator King said on the Senate floor Wednesday, wrong for the students, as it is now, dramatically or wrong for the taxpayers. In addition, the compromise would cut rates for at least the next handful of years. This years rate for most undergraduate students, for example, would fall from 6.8 percent to 3.86 percent. Lawmakers in favor of the compromise point out that since even students eligible for the cheapest subsidized loans could only cover several thousand dollars of college costs with such measures, their new proposal would save students of all income levels while also cutting rates for the poorest college students.
Student Loan Bills Hold Small Differences
That works out to a 6.4 percent interest rate for fall term. Rates would be capped at 10.5 percent. House: Graduate students and parents would borrow at the 10-year Treasury note plus an additional 4.5 percent. That would bring about 6.3 percent interest rates for borrowers this fall. Rates would be capped at 10.5 percent ___ Follow Philip Elliott on Twitter: http://www.twitter.com/philip_elliott Also on HuffPost: Loading Slideshow Deficit Reduction The budget would reduce the deficit by $1.8 trillion over ten years — $600 billion of this reduction would come from revenue raisers, and $1.2 trillion would come from spending reductions and entitlement reforms.
Senate vote likely next week on student loan deal
The new rate for undergraduate Stafford loans would be about 3.8% this year, slightly above the rate that expired July 1. The final vote was 81-18. Sixteen Democrats, joined by Sens. Mike Lee (R-Utah) and Bernie Sanders (I-Vt.), voted no. education loan forgiveness A market-based system had been in place until 2006, when the rate was fixed at 6.8%.
Student loans: Bipartisan reform heads for passage after 81-18 Senate vote (+video)
“The legislation as presented to me isn’t everything I want, but it’s the work of a number of Democratic and Republican senators working long, long hours,” said Reid, D-Nev. The deal was announced late Wednesday, and although it has lukewarm support among liberal Democrats, it is likely to pass Congress and be signed by President Obama because, without action, students will face higher interest rates on loans this school year. A senior House GOP aide said House leaders were checking with rank-and-file members Thursday to make sure the bill has support in the House, but that it was likely to pass because it is similar to House-passed legislation. A vote in the House is also likely next week, the aide said. The aide was not authorized to speak publicly because a final decision on the bill has not been made. House Speaker John Boehner, R-Ohio, was optimistic.
Senate passes student loan plan
Americas incredible economic dynamism since World War II would hardly have been possible without this basic policy orientation. So why dont bullheaded members of Congress seem to understand this? For months they have faced the responsibility of setting a new formula for interest rates on federally guaranteed student loans, and have failed to act. As a result, on July 1, rates on subsidized Stafford loans doubled to 6.8 percent. Those loans are only available to students with needthat is, to students whose families cannot contribute the full cost of college and they account for a quarter of all federal student loans.