Senators Work Together Again

As the immigration bill showed many Americans, Congress can indeed work together. Although there are certain issues the two parties will just never see eye to eye on, when the going gets tough they pull together. The next topic of conversation after the July 4th recess will be the increase of student loan interest rates. On June 27th, a bipartisan group of senators Joe Manchin (D-WV), Richard Burr (R-NC), Tom Coburn (R-OK), Lamar Alexander (R-TN), Angus King (I-ME), and Tom Carper (D-DE) introduced the Bipartisan Student Loan Certainty Act. In a press release from Senator Burr’s office, “The Student Loan Certainty Act requires that, for each academic year, all newly-issued student loans be set to the U.S. Treasury 10-year borrowing rate plus 1.85% for subsidized and unsubsidized undergraduate Stafford loans; plus 3.4% for graduate Stafford loans; and plus 4.4% for PLUS loans. The interest rate would be fixed over the life of the loan and the cap on interest rates for consolidated loans would remain at 8.25%. The Congressional Budget Office has determined this legislation would reduce the deficit by $1 billion over ten years.” As millions of college students are waiting to here if they will be able to afford education for the upcoming fall, this bill has increased urgency. It will also help reduce the looming American deficit over a period of time.  Senator Roy Blunt from Missouri is another Republican eager for its passage. The senator said, “Millions of American students are borrowing between now and the fall, and they’re trying to decide whether or not they can afford to go to school. Now is the time for Congress to pass a bipartisan, common-sense solution that will give students more long-term certainty and access to lower rates. The House passed a bill, and the Senate has a bipartisan plan that is very close to the president’s proposal. I hope Majority Leader Harry Reid will allow a vote on this common-sense solution immediately when the Senate is back in session.” To read more, please visit http://www.burr.senate.gov/public/index.cfm?FuseAction=PressOffice.PressReleases&ContentRecord_id=876d1dbd-0fca-fd94-86a3-8528ef278776&Region_id=&Issue_id=