Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsSenate passes (81 to 18) student loan interest rate bill to make students pay more
Senate passes student loan interest rate bill to make students pay more
by Joan McCarter
The Senate passed legislation today to link the student loan interest rates to the financial markets, providing lower interest rates right away but higher ones if the economy improves as expected. The vote was 81-18.
This means that students taking out federal loans this year with have a 3.86 percent interest rate, slightly higher than the 3.4 percent rate a majority of Democrats voted to preserve, but that was defeated by a Republican filibuster. Under the deal negotiated with Republicans, that low rate can increase to rates as high as 8.25 percent for undergraduates, 9.5 percent for graduate students, and 10.5 on PLUS loans available to graduate students and parents as the economy improves.
An amendment was offered by Sens. Jack Reed (D-RI) and Elizabeth Warren (D-MA) to cap the rates at 6.8 percent for undergraduate Stafford loans, and 7.9 percent for graduate and PLUS loans. Progressive Democrats, joined by almost every other Democrat, lined up in support, but the amendment failed, 46-53. A second amendment offered by Sen. Bernie Sanders (I-VT) would have sunsetted the new interest rates after two years. It was defeated 34-65. That means these increasing rates will now be policy. Fixed student loan rates are a thing of the past.
So the student loan debt that is already larger than credit card debt, larger than auto loan debt, will increase even more now, with students getting drawn in with low teaser rates, and being stuck with higher and higher rates as they continue their education.
http://www.dailykos.com/story/2013/07/24/1226307/-Senate-passes-student-loan-interest-rate-bill-to-make-students-pay-nbsp-more
by Joan McCarter
The Senate passed legislation today to link the student loan interest rates to the financial markets, providing lower interest rates right away but higher ones if the economy improves as expected. The vote was 81-18.
This means that students taking out federal loans this year with have a 3.86 percent interest rate, slightly higher than the 3.4 percent rate a majority of Democrats voted to preserve, but that was defeated by a Republican filibuster. Under the deal negotiated with Republicans, that low rate can increase to rates as high as 8.25 percent for undergraduates, 9.5 percent for graduate students, and 10.5 on PLUS loans available to graduate students and parents as the economy improves.
An amendment was offered by Sens. Jack Reed (D-RI) and Elizabeth Warren (D-MA) to cap the rates at 6.8 percent for undergraduate Stafford loans, and 7.9 percent for graduate and PLUS loans. Progressive Democrats, joined by almost every other Democrat, lined up in support, but the amendment failed, 46-53. A second amendment offered by Sen. Bernie Sanders (I-VT) would have sunsetted the new interest rates after two years. It was defeated 34-65. That means these increasing rates will now be policy. Fixed student loan rates are a thing of the past.
So the student loan debt that is already larger than credit card debt, larger than auto loan debt, will increase even more now, with students getting drawn in with low teaser rates, and being stuck with higher and higher rates as they continue their education.
http://www.dailykos.com/story/2013/07/24/1226307/-Senate-passes-student-loan-interest-rate-bill-to-make-students-pay-nbsp-more
Roll call: http://www.senate.gov/legislative/LIS/roll_call_lists/roll_call_vote_cfm.cfm?congress=113&session=1&vote=00185
InfoView thread info, including edit history
TrashPut this thread in your Trash Can (My DU » Trash Can)
BookmarkAdd this thread to your Bookmarks (My DU » Bookmarks)
2 replies, 798 views
ShareGet links to this post and/or share on social media
AlertAlert this post for a rule violation
PowersThere are no powers you can use on this post
EditCannot edit other people's posts
ReplyReply to this post
EditCannot edit other people's posts
Rec (3)
ReplyReply to this post
2 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
Senate passes (81 to 18) student loan interest rate bill to make students pay more (Original Post)
ProSense
Jul 2013
OP
dsc
(52,166 posts)1. frankly this is quite close to, if not exactly, Obama's plan
and had Obama sided with Warren and Reed we would have gotten a much better deal.
"frankly this is quite close to, if not exactly, Obama's plan"
...no: http://www.democraticunderground.com/10023285917#post2