Senate Turns to Student Loan Issue
The Senate began debate today on the Bipartisan Student Loan Certainty Act. This bill is in response to the dramatic increase of student loans for the upcoming school year which happened July 1st. After the bipartisan display of senators to pass the immigration reform, this is the second time Congress will try to pull together. The bill was introduced by senators Joe Manchin, Lamar Alexander, Kelly Ayotte, Richard Bur, Tom Carper, Tom Coburn, Johnny Isakson, and Angus King. The Bipartisan Student Loan Certainty Act requires:
- For each academic year, all newly-issued student loans be set to the U.S. Treasury 10-year borrowing rate plus 1.85 percent for subsidized and unsubsidized undergraduate Stafford loans; plus 3.4 percent for graduate Stafford loans; and plus 4.4 percent 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 percent.